You have to complete a French income tax form, Impôt sur le revenu, if you were a French resident in 2012 or if you had income from a French source in 2012, e.g. property rental, dividends, business income.
The French income tax system is not based on a pay as you earn system, except for auto entrepreneurs under régime micro fiscal, and we declare and pay our income tax one year down the line. We are therefore about to declare the income earned in 2012 and will start paying this tax in October 2013. If you have declared any French income in 2011, you should automatically receive an Impôt sur le Revenu form via the post.
In this article I will explain how auto-entrepreneurs and micro-entreprises complete the 2042 CK Pro tax form. If you have an entreprise individuelle under régime réel simplifié or an EIRL, EURL, SARL or SAS, I would advise you to get in touch with your accountant, as this declaration is normally included in their yearly accountancy fees.
All French tax offices, called Trésorerie or Trésor Public, provide free advice if you need help with your income tax forms. If you have any doubt about declaring various sources of income, such as interests from accounts abroad, pension, dividends earned abroad, I'd advise you get in touch with them.
1. Deadlines to complete your 2012 French income tax
The deadlines to return your French income tax are:
- 3rd June for departements 01 to 19
- 7th June for départements 20 to 49
- 11th June for départements 50 to 974
Note that you will only be able to declare your 2012 French income tax online, provided you have already completed at least one paper declaration for your 2011 income tax. You'll need several references from your 2011 declaration, including numéro fiscal, numéro de télédéclarant and revenu fiscal de référence (all listed on your 2011 income tax attestation). After you have submitted this information, a certificate will be issued to you and you will be able to log in within 24 hours to complete your declaration.
2. Reminder of 2012 French income tax bands
The income tax of a family will vary according quotient familial, i.e. the number of persons within the household. The French income tax system lowers the amount of tax payable depending on this family quotient. An adult will for instance reprensent 1 part fiscale and a child will represent 0,5 part fiscale. A married couple or a couple under a civil union (PACS) will complete the same declaration (Déclarant 1 and declarant 2), while and a couple living together with no legal link will have to complete two separate forms. A married couple with two children will for instance have 3 parts fiscales.
The household income divided by the number of family quotient will then be submitted to a tax band, with a different taxation rate being applied as the income increase. Here are the 2012 income tax bands:
- 0 to 5963 euros: not taxed
- 5964 to 11896 taxed at 5.5%
- 11897 to 26420 taxed at 14%
- 26421 to 70830 taxed at 30%
- 70830 to 150000 taxed at 41%
- Over 150000 taxed at 45%
3. Income tax forms you might need
Here is a list of the various forms that you'll need to declare your income according to your personal situation:
- Declaring employees’ income:
Déclaration de revenu 2012 (form 2042)
- Declaring your auto-entrepreneur, micro entreprise, house rental or entreprise individuelle income:
Déclaration complémentaire de revenus 2012 professions non salariées (form 2042 CK PRO)
- Declaring income earned and taxed abroad:
Déclaration des revenus encaisses à l’etranger 2012 (form 2047)
- Declaring income from rented properties:
Déclaration de revenus fonciers 2012 (form 2044)
4. Adding your auto-entrepreneur turnover on form 2042 CK PRO
If you have opted for the income tax paid at source, impot libératoire, also called régime micro fiscal, you have already declared and paid your income tax on a monthly or quarterly basis for your income earned in 2012. However, you still need to declare your overall turnover on the Déclaration de revenus complémentaire professions non salariees form 2042 CK PRO.
You will not be taxed again, but Impôts will take into account your business income, in order to assess your overall household income, called Assiette de revenus. This will for example be taken into account to check that you can remain within the regime micro fiscal in 2012 - 26420€ max for a single person, 52840€ for a couple without children. Caisse d’Allocations Familiales will also take this amount into account to work out your family allowance (housing or child allowances).
4.1 Attestion Fiscale 2012 regime auto-entrepreneur
If you registered as an auto-entrepreneur, you should also have received a form from URSSAF or RSI entitled Attestation fiscale 2012 régime auto-entrepreneur. This form confirms the turnover you declared in 2012 and confirms the amount that you should add to your French income tax form. The table also list the cell reference in which you have to add your turnover, for instance 22000 euros in cell 5HQ.
4.2. You chose regime micro fiscal
Go to page 1 on the section titled auto-entrepreneur ayant opté pour le versement libératoire de l’impôt sur le revenu. Add your total turnover cashed in 2012 in the appropriate box according to your activity.
For Trading Activities
Go to Revenus Industriels et Commerciaux Professionnels (BIC):
- 5TA Vente de marchandises: add your total sales for goods
- 5TB Prestation de services et locations meublés: add your total sales for manual services and furnished houses rented
For Professions Liberales
Go to Benefices Non Commerciaux, e.g. teaching, translating, consultants, manual services.
- 5TE revenus son commerciaux
4.3. You did not choose regime micro fiscal
If you have not opted to pay your income tax at source, you will come under regime micro entreprise. Here is how to declare your 2012 business income on form 2042 CK PRO.
For Trading Activities
Go to page 2 under Revenus Industriels et Commerciaux Professionnels. Go to regime micro entreprise, add your turnover cashed in in 2012 chiffre d’affaires brut under the relevant box:
- 5KO Vente de marchandises: add your total sales of goods.
- 5KP Prestation de services et locations meublés: add your total sales here for manual services and furnished houses including gites and chambres d’hotes.
For Professions Liberales
E.g. teachers, translators, consultants, go to page 3 under Revenus Non Commerciaux Professionnels (BNC). Go to the sub-section titled Regime declaratif special ou micro BNC, add your 2012 turnover in box 5HQ Revenus imposables.
How impots calculates your income tax under regime micro entreprise
You are requested to add your 2012 sales called recettes or chiffre d’affaires, without applying any deduction or rebate. Impôts will then apply a standard rebate to your turnover, based on your activity type, in order to calculate your taxable income called revenu fiscal. Rebates applied to micro entreprise based on your activity are:
- Rebate of 71% for trade (vente dee marchandises)
- Rebate of 50% for services (manual services)
- Rebate of 34% for professions liberales (BNC)
If you are not sure how to declare your income, get in touch with your local Impot office to get help. Impots will clarify how to add you pension, property rental, tax credit, investments, dividends, etc. They are usually very helpful at this time of the year.