Auto Entrepreneur = Micro Entrepreneur
Just to clarify... You might have heard about auto entrepreneur and micro entrepreneur? Well it is the same thing! This scheme was launched as Auto Entrepreneur in 2009 and was renamed Micro Entrepreneur in 2016.
New online course - Get my Micro Entrepreneur ultimate guide!
If you are new to France and want to get a clear overview of the Micro Entrepreneur regime, take my Micro Entrepreneur Overview mini course. It will give you a clear understanding of who this regime is for, how it works, as well as how much taxes you will pay. This mini course only costs 47€. It's objective is simple - helping you decide within a couple of hours if the micro entrepreneurs works for you. No fluff. And it is packed with clear explanations in plain English.
Micro Entrepreneur turnover thresholds from 2023 to 2025 - maximum turnover of 77,700 euros for services and 188,700 euros for trade. Be careful however as TVA will have to be applied above 36,800 euros for services and 94,300 for trade. This will mean at this stage requesting a TVA number from Impots, so it is best to plan this move.
Social charges are based on a fixed percentage of the auto-entrepreneur’s turnover. 21.1% for services (consultants, programming, teaching, bed and breakfast), 21.2% for manual & craft activities (builder, tiler, beautician, hairdresser) and 12.3% for trade (gites, ecommerce, shops) . Expenses cannot be claimed for, but have to be recorded. Income taxes can be paid up-front, by paying an extra fixed percentage of their turnover. This option is called impôt libératoire (2.2% for profession liberale and 1% for trade).
Social charges exoneration - changes in 2024
I'm afraid that ACRE was reviewed and is now limited to people registered with the unemployment agency Pole Emploi, benefiting from the minimum revenu of reinsertion RSA or being under 30 years old. ACRE is not automatic and has to be requested on registering your business. The exoneration is also reduced to 50% of the normal rate and be limited to a year: 11% for profession liberale and 6.15% for trade.
Auto-entrepreneurs / micro entrepreneurs are liable to other taxes, including Contribution Foncière des Entreprises (CFE) and Contribution à la Formation Professionnelle (CFP 0.2% for profession liberale and 0.1% % for trade). Auto-entrepreneurs are currently exempt of CFE, but talks are currently under way and it may end up being charged as an extra set percentage turnover.
The auto-entrepreneur, now officially called micro-entrepreneur, is a sole trader or one-person business, registered under the entrepreneur’s name. As such, there is no distinction between the owner and the business, meaning the entrepreneur is liable for the debts generated by the business.
As an auto-entrepreneur / micro-entrepreneur you can not claim any expenses the business incurs.
Micro Entrepreneur Overview
You want to know more about the auto entrepreneur/ micro entrepreneur? Buy my Micro Entrepreneur mini course. Within a couple of hours, you will become and expert and you will be able to decide whether it is a right fit for your project.