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Micro-Entrepreneur Reduced Social Security Charges

Friday 03 March 2017

The level of the fixed rate social security contribution payable by micro-entrepreneurs has been slightly reduced for this year.

The default social insurance regime for micro-entrepreneurs is a basic flat rate 'cotisation', which this year varies from 13.10% to 23.10% of turnover.

Those whose activity is a sales (trading) based business (commerçants), including those who run a cafe/restaurant, or who run a chambre d'hote have had their rate decreased this year from 13.40% to 13.10% of turnover.

The rate for trade based activities (artisans) and sales agents (agents commerciaux) has decreased from 23.10% to 22.70% of turnover.

The main rates for the professions libérales this year is either 22.90% (RSI registered) or 22.50% (CIPAV registered), both of which are slightly down on last year.

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 fiscal libératoire de l'impôt sur le revenu (IR). Whether it makes sense to do so depends on the level of your total income. There are also maximum limits imposed on its use.

If you do not choose this option your business earnings are rolled into your other income and they are charged at the marginal rate of income tax that applies to your total income.

The table below gives the (rounded) rates for each of the five micro-entrepreneur business categories for this year. If you have not elected for the IR then this can be deleted from the sum payable.

The figures are at this stage provisional only, as the publication of a décret is awaited. However, the figures are as recently published on a government website.

Activity
Cotisation
CFP
IR
Chambre
Total
BIC Commercial
13.10%
0.1%
1.00%
0.0015%
14.20%
BIC Services Artisans
22.70%
0.3%
1.70%
0.48%
25.18%
BIC Services Commercial
22.70%0.3%
1.70%
0.044%
24.74%
Professional RSI
22.70%0.3%
2.20%
0%
25.20%
Professional CIPAV
22.50%
0.2%
2.20%
0%
24.90%

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