Last Friday FEDAE warned auto-entrepreneurs about an unexpected social charges increase that was passed in the 2013 Loi de Finance. This text was approved by decree on 27 December and published on 31 December. The government made no mention of this increase in the December press.
Social contributions for activité commerciales (trade) and activité artisanale (artisans, labour / manual based activities) will increase by 0.2% in 2014, due to the increase of the basic pension insurance assurance vieillesse.
In order to adjust the social contributions levels of auto-entrepreneurs to other entrepreneurs, the rate of contributions payable by auto-entrepreneurs in trading and gites will increase from 14% to 14.1% with effect from 1 January 2014.
The social charges rate for auto entrepreneurs registered as profession liberale and relating to CIPAV for pension, will increase from 21.3% to 23.3% for 2014 and 25.2% for the year 2015. The social charges rate of 24.6% services remains unchanged.
This increase was not scheduled in advance and was passed over the Christmas holidays. FEDAE is currently exploring avenues of possible response. I'll keep you up-dated on this subject in the coming weeks.
Summary of auto entrepreneur social charges increase
|Activity type||Social Charges||Income tax at source*||CFP**||Total|
|Trade, gites, accommodation, food.||14.1%||1%||0.1%||15.2%|
|Services, artisans (labour / manual based activities)||24.6%||1.7%||0.3%||26.6%|
|Professions libérales relating to RSI for pension, e.g. astrologue, agent commercial ***||24.6%||2.2%||0.3%||27.1%|
|Professions liberals, intellectual based services relating to CIPAV for pension.||23.3%||2.2%||0.2%||25.7%|
* Impot libératoire: optional for auto-entrepreneurs. No changes.
** CFP Contribution à la Formation Professionnelle. Small tax toward professional training. No changes.
*** List of profession liberale relating to RSI for pension.
Source: Decree No. 2013-1290 of 27th December 2013, Official Journal of 31 December 2013.