Auto Entrepreneur System in France

English translation of the new autoentrepreneur system

There is a scheme in France called Auto Entrepreneur, which is a simple system for the self-employed. Before this scheme came about it was very costly to be self-employed because of the social charges in France, which were not based on profits or turnover.

The Auto Entrepreneur scheme is based on paying a percentage of you turnover in tax and social charges. This simplifies the whole system, but there are limits as to what you can earn, based on the type of business.

Unfortunately the information on the French website was only in French, but now there is a PDF downloadable version of the Auto Entrepreneur scheme translated into English   which I have posted the link to on my other site HERE, with a few more details.

For any budding authors living in France you can sign up to the scheme as long as your turnover does not exceed 32.000 Euros, you will then pay 20.5% in charges on your turnover.

About Steve Bichard

I run French Classified and Property
This entry was posted in Revenue and Tax and tagged , , , , , , . Bookmark the permalink.

5 Responses to Auto Entrepreneur System in France

  1. EviX says:

    Hello,

    I am living in France and working under the status of Auto-Entrepreneur in International Business Development, it means that you work as a kind of Freelance.

    You are right about 32.000€ of turnover but it is applicable only for service providers (teachers, mechanics, etc…) but if you are for example reseller of products of X company, your turnover should be less than 82.000€, legislation has changed.

    What’s about taxation, it depends on your activity: product seller or services provider… And if you are less than 28 years old, you may apply for a tax reduction plan called ACCRE which reduces your taxes from around 15% – 23% to 3% – 5%… because they consider you as a young entrepreneur…

    If you are interested in more details I can share them.

  2. JC says:

    Hey Steve!
    Ive been an auto entrep for about 6 months. I declared last month the only check I received and I see now that they will take about 20 percent of the amount from my account. I dont have the money to pay at the moment. Is there a way to work out a payment plan with urssaf? Thanks!

    • I have no idea if you can pay in stages, but you do really need to put aside 22% to 23% of your turnover for social charges and tax which is difficult. They do not usually take it from your account you normally have to send them a cheque.
      Your best bet is this website for the best advice as it can be quite difficult to understand.

  3. Sindy says:

    Hi there Steve,
    I set up as an AE 11 months ago and have duly paid the 21.5% social charges each quarter. I will not reach the 32,000 threshold this year and am wondering what kind of income tax I should be looking at.
    Suppose I earn EUR 30,000 this year; at the end of the year I will have paid EUR 6,450 in social charges. Is tax deducted from the gross amount of 30,000 or from the amount without the social charges? And what kind of percentage should I be looking at? I am a freelance translator, so I have hardly any costs to deduct. And I am not under 28.
    Many thanks for any tips you can give me!
    Sindy

    • Hi Sindy

      The tax is included in the 21.5% (although I thought it was slightly over that now) and you would only pay more if other earnings took you over the 32,000€. If you need good tax advice I can recommend Debbie Bradbury SAREG at who saved a friend of mine a lot of money on her extra tax payment demand as she went over the 32,000€ with other income from the UK.

      I will also be adding other companies for tax and AE advice in my new website in the French Finance and insurance section.

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