In this case, we take the annual result of the company that is to say the annual turnover excluding tax from which or subtract the deductible charges. The self-employed person must pay VAT. He must keep a journal book, annexes, as well as the publication of the annual accounts. If the annual turnover exceeds a threshold of 236,000 euros, additional obligations must be taken into account. Otherwise, we can speak of a simplified real regime. Visit taxfyle.com/blog/independent-contractor-taxes for all supports for you now.
Micro-enterprise tax regime
We calculate here the annual turnover excluding tax from which we subtract the tax allowance for professional expenses. This tax allowance corresponds to 34% for BNC (Non Commercial Profits). The flat-rate income serving as the basis for calculating income tax is thus 66% of annual turnover. These independent contractors benefit from simplified accounting. However, if the turnover one day exceeds the threshold of 32,900 euros, the tax regime will have to be changed to the real regime or by creating a company.
Self-employed person: withholding tax
An independent contractor who has chosen to be a self-employed person is subject to the micro-enterprise tax regime. An alternative is to choose the final payment of the income tax if the fiscal income of the first two years is lower than the threshold defined by the BNC. The tax to be paid as part of the withholding tax corresponds to 2.2% of monthly or quarterly turnover, depending on the option chosen.
Overview of the different legal statuses
The choice of the legal form most suited to your economic activity is essential. You can even get help in this choice by a specialist in the field. This is how important it is. If you are a job seeker and just getting started in starting your own business, you can request a free consultation with an expert.
Sole proprietorship
This status concerns sole entrepreneurs to whom no capital contribution, structural costs or start-up capital is responsible. Only an application for registration as a natural person is necessary. One of the major drawbacks with this status is that it does not relieve you of financial responsibility for your assets. In other words, in the event of a problem, your personal property is engaged.
Sole Proprietorship with Limited Liability
Starting capital is to be provided with this status. The minimum amount is 1 euro. In addition to registration in the trade and companies register, you will need to declare the articles of association at the tax office and publish an advertisement in an appropriate legal journal. The annual accounts must be sent to the clerk of the commercial court. If a problem arises, the liability incurred is limited to the amount of the capital. This legal form therefore presents fewer risks.
