Micro-Entrepreneur Social Security Rates in 2016
Wednesday 03 February 2016
The level of the fixed rate social security contribution payable by some micro-entrepreneurs has been slightly increased for 2016.
The default social insurance regime for micro-entrepreneurs is a basic flat rate 'cotisation', which varies from 13.40% to 23.10% of turnover.
Those whose activity is a sale (trading) based business (commerçants), or who run a cafe/restaurant, or who let out furnished accommodation as a registered business activity have hade their rate increased this year from 13.30% to 13.40% of turnover.
Trade based activities (artisans) and sales agents (agents commercials) have had their rate increased from 22.90% to 23.10% of turnover.
The main rates for the professions libérales remains the same, at either 23.10% (RSI registered) or 22.90% (CIPAV registered).
In addition to the main social security contribution, micro-entrepreneurs also pay a small fixed percentage professional training levy, called la contribution de formation professionnelle (CFP).
Sales based businesses are also required to affiliate to their local Chambre de Commerce et d'Industrie (CCI) and trade based professions to the Chambre des Métiers et de l'Artisanat (CMA) . You can read more on this process at Micro-Entrepreneur Business Registration.
Finally, micro-entrepreneurs can also elect to pay a flat rate income tax charge on their business earnings, called the versement libératoire de l'impôt sur le revenu (IR).
If they do not choose this option their business earnings are rolled into their other income and they are charged at the marginal rate of income tax that applies to their total income.
The table below gives the rates for each of the five micro-entrepreneur business sector groups for this year is as follows:
|BIC Services Artisans||23.10%||0.3%||1.70%||0.48%||25.58%|
|BIC Services Commerical||23.10%||0.3%||1.70%||0.44%||24.144%|
*The rate for landlords of furnished lettings is 1.7%.