When Lucie switched to self-employment in Paris, she thought bookkeeping would be the hard part. Instead, cross-border payments and rules about income reporting left her unsure what to do next.
We wrote this guide to calm that uncertainty. You’ll get clear steps on filings, social contributions, VAT, and the choices that shape what you owe and when you pay.
Around 12% of French workers are self-employed, so many of you face the same questions. We explain how your business structure and regime drive tax calculations and reporting rhythm.
By the end, you should feel confident picking the right status, estimating income impact, and keeping tidy records. If you have multi-country income or rapid growth, consult an accountant.
For a deeper look at specific fiscal advantages, see our note on advantages of fiscal status.
Table of Contents
Key Takeaways
- Understand core obligations: filings, social contributions, and VAT.
- Your business form largely defines which taxes apply.
- Keep simple, consistent records to make declarations easier.
- Estimate what you may owe before making business decisions.
- Seek professional help for cross-border or complex income situations.
Why Freelance Taxes in France Feel Complicated (and How to Simplify Them)
Many independent professionals find French filing rules layered and hard to follow at first. You must manage several obligations at once: income reporting, social contributions, and sometimes VAT. That mix creates the impression of a complex system.
What you’re responsible for
You pay income tax on your taxable profits and make social security contributions to URSSAF. Depending on turnover and status, VAT may apply on top of those charges.
Why business status matters
Your legal status (micro-entreprise, EI, SASU/EURL) shapes how tax and social security liability work. It decides which forms you file, which deadlines apply, and how you claim expenses.
Key bodies you’ll deal with
DGFiP handles income tax declarations and notices. URSSAF manages contribution declarations and payment schedules. Separate these obligations and the whole system becomes more predictable.
- Choose the right status early.
- Track revenue and expenses consistently.
- Set aside cash monthly so pay day won’t surprise you.
How the French Tax System Works for Self-Employed Professionals
Your business status determines whether profits land on your personal return or the company ledger. That split drives how you extract money, the accounting you’ll need, and which forms to file.
Income tax vs. corporate tax: what changes based on your status
Many sole traders (Entreprise Individuelle) pay personal income tax (Impôt sur le Revenu) on their profits. Companies usually pay corporate tax (Impôt sur les Sociétés).
In practice, switching to corporate tax alters three things:
- You don’t automatically pay yourself all profits; you take salary or dividends.
- Profits are taxed at the company level, then again when distributed to you.
- Accounting and reporting requirements become stricter and more formal.
Core terms you’ll meet
BIC covers industrial and commercial profits — think sales and trade activities. BNC covers non-commercial professional income — mainly liberal professions.
CFE is a local business property tax that many small activities must budget for each year. It’s separate from income or corporate tax.
TVA is the French name for VAT. You collect it on invoices and pass it to the state; you do not treat it as taxable income.
Keep these labels in mind. They make official guidance and accountant advice far easier to read. For a practical guide to filing, see this note on declaring income and an overview on freelance tax in France.
Choosing the Right Business Structure for Your Freelance Activity
Your business structure is the single choice that shapes liability, reporting, and cash flow. This foundation decision affects how you pay income tax, whether corporate tax may apply, and how easy bookkeeping will be.
Micro-entreprise: simplified taxes based on turnover
Micro-entreprise uses turnover to calculate your taxable base with fixed allowances. It keeps admin predictable and suits low-cost activities that value simple quarterly reporting.
Entreprise Individuelle (EI): profits taxed on your personal return
With an EI, you and the business are the same legal person. Profits are declared on your personal return, which can be an advantage when you have real expenses to deduct.
EURL and SASU: when a company makes sense
EURL or SASU separate personal assets from the company. They fit higher turnover, reinvestment goals, or when you need clearer liability protection. Expect stricter accounting and payroll rules.
SARL considerations
SARL usually faces corporate tax, but in specific cases it may be treated under personal income tax for the first five years. That temporary option can shape early planning.
Estimate turnover, likely costs, desired protection level, and growth plans. Match to the simplest status that supports those goals. If you expect international clients, VAT exposure, or rapid scaling, consult an accountant and read our deeper note on fiscal options here.
Taxation for Freelancers: Picking Between the Standard Regime and Micro-Entreprise
Choosing the right tax regime shapes how much you record, claim, and ultimately need to pay. This decision steers your accounting work and your yearly bill.
Standard regime: profit-based calculation
Under the standard regime you report revenue and deduct legitimate business expenses. Revenue minus those costs equals your profits.
Those profits form your taxable income for income tax. This regime rewards careful bookkeeping when real costs are high.
Micro-entreprise: turnover with a fixed allowance
The micro option asks you to declare turnover and apply a fixed allowance (percentage varies by activity). The remainder becomes the taxable base.
This route reduces paperwork and suits activities with low overheads.
Who may be ineligible
Some regulated liberal professions (doctors, lawyers and similar) may not qualify for micro-entreprise. Verify your activity classification before you choose.
- Decision rule: Are your real expenses higher or lower than the micro allowance?
- Trade-off: Micro = simplicity; standard = possible tax savings if expenses are significant.
To compare expected declarations and cash flow, see our short guide on declaring turnover.
French Income Tax Rates and Brackets for 2024 and 2025
French income tax bands shift slightly each year. Knowing the exact rates lets you estimate what you must set aside and avoid cash-flow surprises.
2024 income tax bands (0% to 45%)
| Taxable income band (€) | Marginal rate |
|---|---|
| Up to €11,294 | 0% |
| €11,295 – €28,797 | 11% |
| €28,798 – €82,341 | 30% |
| €82,342 – €177,106 | 41% |
| €177,707 and above | 45% |
2025 income tax bands (0% to 45%)
| Taxable income band (€) | Marginal rate |
|---|---|
| Up to €11,497 | 0% |
| €11,498 – €29,315 | 11% |
| €29,316 – €83,823 | 30% |
| €83,824 – €180,294 | 41% |
| €180,295 and above | 45% |
How progressive brackets apply to your taxable income
The French system taxes income progressively. Only the portion inside each band pays that band’s rate. For example, a freelancer with €50,000 taxable income in 2024 pays:
- 0% on the first €11,294;
- 11% on the next slice to €28,797;
- 30% on income between €28,798 and €50,000.
Important: these bands apply to your taxable income after micro allowances or after deducting real business expenses under the standard regime. They do not apply to total turnover.
Social security charges and VAT are separate layers. Your effective burden equals income tax plus contributions and any VAT responsibilities.
Planning tip: pick a conservative marginal rate and set aside that share of net receipts each month. For a practical comparison and deeper guidance, see our detailed 2025 guide.
Micro-Entreprise Taxes in Detail: Turnover Limits and Allowances
Micro-entreprise rules set clear turnover ceilings that determine whether you keep simplified reporting or must upgrade to a full accounting regime.
The eligibility limits depend on activity type. Crossing a ceiling forces a move to the standard regime, with different reporting and accounting duties.
Activity buckets and what they mean
Commercial sales (micro-BIC): turnover must be under €188,700. You benefit from a large allowance.
Services & trade (micro-BIC services): turnover limit €91,900. Simpler reporting, smaller allowance.
Liberal/professional (micro-BNC): turnover limit €91,900. Different allowance and treatment on your income tax return.
| Activity | Turnover limit (€) | Allowance | Taxable base (%) |
|---|---|---|---|
| Commercial sales (micro-BIC) | 188,700 | 71% | 29% |
| Services / trade (micro-BIC) | 91,900 | 50% | 50% |
| Liberal / professional (micro-BNC) | 91,900 | 34% | 66% |
Allowances act as an automatic expense substitute. You do not list actual bills: the allowance reduces your declared amount and simplifies bookkeeping.
Example (commercial sales): if annual turnover is €50,000, taxable base = 29% × €50,000 = €14,499. That amount is the basis for income tax and contributions.
Note: micro can suit low-cost service businesses well. If your real expenses are higher, the standard regime may lower your tax burden.
Standard Regime Deductions: Lowering Taxable Income with Legitimate Expenses
When records are clear, the standard regime rewards business spending that is genuine and necessary. Good accounting turns qualifying costs into a smaller taxable income basis while keeping you audit-ready.
What counts as a deductible business expense
Under French rules an expense must be necessary for normal business management and supported by invoices or receipts. Keep proof and a brief note explaining the business purpose.
Home office allocation
Allocate electricity, internet and rent proportionally by space used or time spent working at home. Choose one method and apply it consistently each year.
Equipment, software and office costs
Track purchase invoices, warranty papers and subscription records for laptops, software licenses, and furniture. Record phone, supplies and coworking fees as office costs with vendor documents.
« Consistency and clear receipts make deductions simple to justify during an audit. »
| Category | Examples | Required Documents |
|---|---|---|
| Home office | Portion of rent, utilities | Lease, bills, allocation method |
| Equipment & software | Laptop, SaaS subscriptions | Invoices, license keys, business note |
| Office costs | Phone, supplies, coworking | Receipts, contracts |
Timing matters: claim an expense in the year it was incurred. Monthly bookkeeping prevents mistakes at year-end and protects your business position.
Social Security Contributions for Freelancers in France (URSSAF)
Setting a clear payment rhythm to URSSAF helps steady cash flow across the year. URSSAF collects your social security contributions — the social side of your obligations — and once your schedule is set it becomes routine.
Micro-entreprise rates and what they mean
Micro-entrepreneurs pay social contributions at roughly 6% to 22%, depending on activity category. The exact rate varies by whether you sell goods, provide sales-related services, or perform professional services.
Standard accounting and annual DSI
Under standard accounting your contributions are calculated on professional income. You file the annual Déclaration sociale des indépendants (DSI), and URSSAF adjusts charges after that declaration.
Payment rhythm: monthly vs quarterly
Choose monthly payments if income is steady; choose quarterly if revenue comes in lumps. Monthly payments smooth cash flow. Quarterly payments ease admin in slow months.
Deductibility and planning habits
Many social security contributions reduce taxable income, so accurate accounting helps lower your bill. Track contributions precisely and keep receipts.
- URSSAF role: collects social charges tied to health, family and retirement cover.
- Micro range: ~6%–22% depending on activity.
- Standard regime: contributions based on declared professional income; adjusted after DSI.
- Payment choice: pick monthly for predictability or quarterly to match irregular income.
| Regime | How contributions are calculated | Typical payment rhythm |
|---|---|---|
| Micro-entreprise | Flat percentage of turnover (6%–22%) by activity | Monthly or quarterly |
| Standard accounting | Based on professional income; adjusted after annual DSI | Monthly or quarterly, adjusted post-DSI |
| Planning advice | Set aside a percentage of receipts to cover charges and avoid surprises | Monthly reserve recommended |
VAT in France for Freelancers: When to Register and How to Charge TVA
Value-added tax can change how you price services and manage cash; understanding it early avoids surprises. VAT is a collection and reporting obligation separate from income tax: you charge it to clients, hold it, and remit it on your declarations.
Registration thresholds
Service-based businesses must register once annual turnover exceeds €34,600. Commercial sales cross the higher threshold of €86,900.
Staying below these limits simplifies pricing and reduces admin. If you approach a threshold, re-evaluate invoicing and cash planning.
Rates you need to know
France uses four main rates: 20% (standard), 10%, 5.5%, and 2.1%. The applicable rate depends on the nature of goods or services supplied.
How VAT changes your processes
On invoices you must show VAT separately, state your VAT number when registered, and clearly list taxable amounts. Do not treat VAT as business revenue; hold it in a reserved account.
Keep complete supporting records: invoices received and issued, VAT collected, and VAT paid on purchases. Good accounting prevents errors at declaration time.
Reporting and planning
Make timely declarations and set aside VAT funds so you can pay when due. Regular bookkeeping and monthly or quarterly reconciliations help preserve liquidity.
Note: planned threshold reforms for 2025 were delayed. Monitor official updates rather than relying on rumors.
- VAT is charged to clients, not a business cost — you act as collector.
- Know your threshold and the correct rate before issuing invoices.
- Separate VAT from revenue in your accounts and plan cash flow accordingly.
Corporate Tax for Freelancers Using a Company Structure
A clear company structure changes who pays tax on your business profits.
If you operate through a company, your profits may be taxed at the company level rather than on your personal return. That shift matters for planning, cash flow, and legal liability.
The standard corporate rate
The standard corporate tax rate in France has been 25% since 2022. A flat company rate can simplify forecasts and suit businesses that plan to reinvest earnings.
Reduced rate for smaller companies
Eligible small companies pay a reduced 15% rate on profits up to €38,120. Eligibility depends on turnover, ownership and other conditions, so verify your case with an adviser.
When personal income tax may still apply
In some status choices or specific cases you may opt (or qualify) to be taxed under income tax rules instead of corporate tax. This can help in early years or when you want to draw most revenue personally.
- Think cash flow: reinvesting in the company often favors corporate tax.
- Think withdrawal: if you plan to pay out most income, personal tax treatment may be advantageous.
- Compliance: company structures bring stricter reporting and higher administrative duties.
Practical point: compare scenarios—how much you keep in the company versus how much you take as salary or dividends—before deciding which route helps you best pay tax and protect liability.
Registering and Filing Taxes as a Freelancer in France
Begin your administrative journey by registering at the Centre de Formalités des Entreprises (CFE). The CFE directs your file to URSSAF, DGFiP and other bodies so you won’t duplicate steps.
How to register through the CFE
Choose the CFE branch that matches your activity. Complete the forms they provide and upload ID, proof of address and activity details.
Once registered, you’ll receive confirmation and the identification numbers you’ll need to declare income and pay social charges.
Which forms you’ll file
Your chosen regime determines the form:
- Standard regime: forms 2031 (BIC) or 2035 (BNC).
- Micro-entreprise: use form 2042C on your personal return.
Filing the correct form prevents late notices and reduces errors during accounting and reporting.
Key deadlines and corporate tax timelines
2025 deadlines: postal returns due 20 May; online deadlines vary by département between 29 May and 5 June. Mark the window in your calendar now.
If you run a company, file the corporate tax return within three months of your fiscal year-end or by 30 April the following year.
Corporate payments are usually quarterly. Annual payment may be allowed for new companies or when the prior year’s corporate tax paid was under €3,000.
Compliance checklist and when to call an accountant
| Action | Why it matters | Timing |
|---|---|---|
| Register at CFE | Routes your file to all agencies | Before trading |
| Select correct form | Avoids rework and penalties | Annually at declaration |
| Set calendar reminders | Prevents late filings and interest | Monthly/quarterly |
| Engage an accountant | Helpful for first year, regime change, company setup or VAT registration | When situations change |
« Organize documents, set calendar alerts, and seek advice early — small steps save larger costs later. »
Practical tip: keep a simple folder structure and monthly accounting entries. That habit makes declaring income tax and meeting payment dates straightforward, and it reduces stress at year-end.
Penalties, Audits, and Common Compliance Mistakes to Avoid
A single late declaration may create cascading charges and extra scrutiny. Treating compliance as a routine task prevents most penalties. Small habits save time and protect your business liability.
Late income tax filing can trigger penalties up to 10% of the amount you owe. Beyond the fine, late filing adds stress when you should be serving clients or growing revenue.
Late corporate tax filings carry interest at 0.4% per month plus penalties. Late payments may start at 5%, and company accounting rules make preparation essential.
Fraud cases are the most serious: fines can reach 80% in aggravated situations. Accurate reporting and clear records keep you on the right side of the rules.
Common mistakes we see
- Mixing personal and business expenses with no supporting invoices.
- Missing VAT thresholds and failing to register in time.
- Not reconciling invoices to bank records monthly.
Prevention habits
Keep simple, dated receipts and reconcile accounts monthly. Use basic accounting routines and separate business accounts. If a notice arrives, seek help early.
For practical tips on allowable deductions and how to document an expense, see our deductions guide.
« Penalties are often avoidable when compliance is a regular part of running your business. »
Conclusion
Here is a concise summary to help you turn rules into routine and avoid surprises.
Choose the right status and regime: that decision shapes how you pay tax, social charges, and VAT. Micro favors simplicity tied to turnover; the standard route rewards real expenses when costs are high.
Plan cash flow: set a monthly reserve for income tax and URSSAF. Note key numbers — VAT thresholds (€34,600 services; €86,900 sales) and corporate tax rates (25% standard; 15% up to €38,120) — and mark 2025 filing windows (late May–early June).
Keep tidy records, separate accounts, and set calendar alerts. If your activity grows, crosses thresholds, or includes international revenue, consult an accountant to protect cash and limit liability.
See practical guidance on choosing fiscal options and take the next small steps today.
FAQ
What taxes and contributions am I responsible for as a self-employed professional in France?
You must pay personal income tax (or corporate tax if you incorporate), social security contributions to URSSAF, and possibly VAT (TVA) if you exceed registration thresholds. You may also face local business taxes like the CFE. The exact mix depends on your legal status (micro-entreprise, EI, EURL, SASU, etc.) and your turnover and profits.
How does my business structure change what I pay?
Your legal form determines the tax base and which tax rules apply. Micro-entreprise uses simplified taxation based on turnover with fixed allowances. An Entreprise Individuelle is taxed on profits under personal income tax. Companies (EURL, SASU, SARL) may be subject to corporate tax or opt for personal income tax in specific cases, and they face different social contribution rules.
When do I need to register for VAT (TVA)?
VAT registration is required when you exceed thresholds: about €34,600 for most services and €86,900 for commercial sales. Below those limits you may benefit from franchise en base (VAT exemption). Once registered, you must charge VAT on invoices, file returns and keep detailed records.
What are the 2024–2025 income tax bands I should plan for?
French income tax remains progressive with bands up to 45% for the highest incomes in both 2024 and 2025. Your taxable income is split across brackets, so only the portion in the top bracket pays that top rate. Exact band thresholds change annually — check DGFiP guidance or an accountant for precise numbers for your situation.
What is the difference between income tax and corporate tax for a freelancer?
Income tax applies when profits are taxed personally (EI, some company options). Corporate tax (Impôt sur les Sociétés) applies to company profits (EURL/SASU taxed as companies) at 25% standard rate, with a reduced 15% on the first €38,120 for eligible small companies. Choosing one or the other affects social charges and net take-home.
Can I deduct business expenses to lower my taxable income under the standard regime?
Yes. Under the standard (régime réel) you deduct legitimate expenses: professional rent, equipment, software, travel, professional insurance, and a fair share of home office costs. Document receipts, allocate shared home costs reasonably, and claim expenses in the year they are incurred.
How do micro-entreprise allowances work for calculating taxable income?
Micro-entreprise applies a flat allowance to turnover depending on activity: for commercial sales the taxable base is 29% (71% allowance), for services/trade it is 50%, and for liberal/professional activities (micro-BNC) it is 66% taxable (34% allowance). You pay income tax on the reduced base and social contributions as a percentage of turnover.
Who cannot use the micro-entreprise regime?
Some regulated liberal professions and activities with specific professional rules may be ineligible. Also, if your turnover exceeds the micro thresholds (€188,700 for some sales activities, €91,900 for services) you must change regime and use real accounting.
How are social security contributions calculated and paid?
For micro-entrepreneurs contributions are a percentage of turnover (roughly 6%–22% depending on activity type). Under the standard regime, URSSAF contributions derive from declared profits via the annual DSI or regular declarations. Payments can be monthly or quarterly, impacting cash flow planning.
Which forms and registrations do I need to file taxes properly?
Register at the appropriate Centre de Formalités des Entreprises (CFE). File the correct forms for your regime: 2042C for personal declarations, 2035 for BNC professionals, or 2031 for BIC/professional companies. Corporate taxpayers follow IS filing deadlines. Always verify departmental deadlines each year.
What are turnover thresholds I should monitor as a micro-entrepreneur?
The main ceilings are €188,700 for certain commercial activities and €91,900 for most service or liberal activities. Exceeding them forces a transition to the standard regime with full accounting and different tax treatment.
How should I handle home office costs and allocate expenses?
Keep clear records and use a fair, documented method to apportion shared costs (electricity, internet, rent). Under the standard regime you can claim the proportion used for business. For micro-entreprise these costs are effectively covered by the fixed allowance, so itemized claims are not possible.
What VAT rates might apply to my services and goods?
France has multiple VAT rates: the standard 20%, reduced 10% and 5.5%, and a special 2.1% for certain publications and medicines. Which rate applies depends on the nature of your goods or services. Correct application affects invoices and client expectations.
When does corporate tax apply and are there reduced rates?
Corporate tax applies when your business is a taxable company (SASU, EURL taxed as IS, SARL opting for IS). Standard rate is 25% since 2022. Small companies may benefit from a 15% rate on the first €38,120 of profit if they meet eligibility criteria.
What penalties or audit risks should I be aware of?
Late income tax filing can trigger penalties up to 10% of tax due. Late corporate tax filings incur monthly interest (about 0.4%) plus fines. Fraud or repeated non-compliance leads to higher fines and audits. Keep organized records, meet deadlines, and consult an accountant to reduce risk.
How do payment schedules (monthly vs. quarterly) affect my cash flow?
Monthly payments smooth cash flow and reduce surprises; quarterly payments can help if your revenue is seasonal. Choose the cadence that matches your receipts and set aside a portion for taxes and social contributions to avoid shortfalls.
When should I consult an accountant or tax advisor?
Consult an expert when choosing legal status, after crossing turnover thresholds, before major investments, or if you face audits or complex VAT/IS questions. An advisor helps optimize tax position, manage deductible expenses, and ensure compliance with DGFiP and URSSAF rules.
