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Cotisation Increase for Auto-Entrepreneurs

Tuesday 07 October 2014

The exemption of auto-entrepreneurs from the payment of a tax towards the local chambers of commerce will cease from January 2015.

Each year, it seems, the regulatory framework for auto-entrepreneurs gets tougher.

This year auto-entrepreneurs social security contribution rates were increased, and the three year exemption from business rates granted to start-ups was abolished.

There are also now additional insurance obligations, which we shall cover in the Newsletter on another occasion.

It is all part of move by the government to ensure that auto-entrepreneurs do not hold tax or other advantages over those businesses in other statuts.

From 2015 auto-entrepreneurs
will be obliged to pay a regular contribution towards financing the Chambres du Commerce et de l'Industrie (CCI) and Chambres de Métiers et de l’Artisanat (CMA).

The level of this contribution will be a percentage of turnover, and will differ by business profession, as follows:

  • Services Business - 0.044%
  • Services Artisans - 0.48%
  • Sales, restaurants and furnished accommodation - 0.015%
  • Sales Artisans - 0.22%
  • CCI & CMA affiliated artisans - 0.007%

Slightly different rates apply for Alsace and Moselle.

The contributions will be payable on a monthly or quarterly basis, alongside payment of the cotisations sociales.

Those in one of the professions libérales affiliated to the Caisse Nationale d'Assurance Vieillesse des Professions Libérales (CIPAV), are not liable for this charge.

However, their social security rates increased by two percentage points from 21.3% to 23.3% in 2014, and they will rise again in 2015 to 25.2%.

Mandatory On-Line Payment

Since 1st October, auto-entrepreneurs whose turnover reaches a minimum threshold have been required to declare their income for the payment of cotisations sociales using the government on-line payments system.

These payments are made to 'URSAFF', the social security collections agency, through the site at Portail Autoentrepreneur.

These minimum turnover thresholds are 50% of the maximum turnover permitted for auto-entrepreneur status.

The thresholds for 2014 are €41,100 for those in commercial activities, and €16,450 for services activities and the professions libérales.

If you incurred the (slightly lower) thresholds that applied in 2013 you are obliged to pay on-line from 1st October 2014.

The same principle applies to those who operate under other business statuts, although in their case the threshold is based on the level of the
cotisations sociales payable. From January 2015, this figure is €10,000 in social security contributions paid the previous year.

If this rule is not respected then a fine of 0.2% of the sum not paid on-line is payable.

There are similar on-line payment requirements concerning VAT and business taxes.

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