Auto entrepreneur Income tax regime for a couple?
yshek
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My wife is about to register as an auto-entrepreneur. I am a salaried employee of a French company and we do not have children. We would like to better understand the income tax implications of the two options for tax payment. i.e. at source vs end of year. I understand that if chooses to pay income tax at the end of the year, then:
- Tax authorities would take into account my wife’s income (turnover, applied with the relevant rebate for profession liberale) and mine.
- Divide the total household income by two.
- Then apply the tax rate for each of the relevant tax brackets.
I understand the when choosing to pay income tax at source, a 2.2% tax is applied to turnover on a pay as you go basis. However, I am not clear on what is the implication on the household tax payment at the end of the year.
- Would it be the same calculation as above, but deducing the tax paid at source?
- Would the household tax only be calculated on my income, i.e. income not yet taxed: non-auto entrepreneur income? If so, would we still benefit from dividing the income by two?
- Is it something else?