Self-employment status and taxes working in France

ealex
· Viewed 1909 times

I am looking into moving to France soon and as I am currently working as a freelance systems administrator for a US-based company I was wondering what the implications of doing the same thing in France would be. I would need to register as an Entreprise Individuelle, and since my income is under 27K euros a year, I would fall under the micro-entreprise status. Now one of the issues is, if the activity I perform falls under the services status, and if so what would be the sum against which my income tax and cotisations are calculated (from what I have seen it should either be 50% for Services or 66% for Professional, but not sure which of the two fits best). I also understand under BNC I do not need to be concerned with VAT/TVA. Social (pensions) and health insurance were described as payable through RSI and were quoted at 6,5%.

Now the real mystery for me is the taxe profesionelle. As an Entreprise Individuelle I would not own any assets or have a lieu de prestation, as I understand, so is the taxe professionelle calculated by where I live in France, eg: where I also conduct my business as an independent? If so how much would the TP for Paris be for example. To this there’s the added CSG + CRDS = 8%. And from what I see on RSI, another 8,6% (assurance vieillesse base) + 5% (assurance vieillesse complem.) + 0.15% (participation formation). So I reach 28.15% of 50% of my income just for social contributions plus TP plus RSI deces et invalidite, another 100 euros or so.

And after that, there’s the income tax. Would I as an Entreprise Individuelle still benefit from the 10% deduction for professional expenses? Would the income tax be calculated against 50% of my gross income and be the only other tax I need to pay? Are the social contributions deductible as well? I am really trying to get a grasp of what the costs of operating as an Entreprise Individuelle in France would be and ultimately, how much would be left in my pocket.

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