How is micro-enterprise income taxed?
In a micro-enterprise, your income is subject to income tax (IR). You don't pay corporate tax. Two options are available:
- Standard regime (flat-rate deduction) — default
- Flat-rate withholding (VFL) — optional
In both cases, you must file an annual income tax return, even if you opted for the flat-rate withholding.
Don't confuse the revenue declaration to URSSAF (monthly/quarterly) with the annual tax return. These are two separate obligations.
2026 declaration calendar
Deadlines for 2025 income
The 2025 income declaration takes place in spring 2026:
| Zone | Online deadline |
|---|---|
| Zone 1 (departments 01 to 19 + non-residents) | May 22, 2026 |
| Zone 2 (departments 20 to 54) | May 29, 2026 |
| Zone 3 (departments 55 to 976) | June 5, 2026 |
Reminder: Online filing is mandatory for all taxpayers with internet access.
Standard regime: flat-rate deduction
How does it work?
The tax administration applies a flat-rate deduction on your revenue before integrating it into the progressive income tax brackets:
| Activity type | Deduction | Minimum |
|---|---|---|
| Buy-resell (BIC) | 71% | €305 |
| Services (BIC) | 50% | €305 |
| Liberal professions (BNC) | 34% | €305 |
The deduction represents your professional expenses on a flat-rate basis. This is the advantage of the micro regime: no need to justify actual expenses.
Calculation example
Freelance writer (BNC), annual revenue 2025: €45,000
- Flat-rate deduction: 45,000 × 34% = €15,300
- Taxable micro income: 45,000 - 15,300 = €29,700
- This amount is added to other household income
- Tax is calculated using the progressive brackets
If your actual expenses exceed the flat-rate deduction, the standard regime may be more advantageous. Compare with our comparison simulator.
Flat-rate withholding (VFL)
How does it work?
The VFL is a flat-rate income tax payment, collected monthly or quarterly alongside your URSSAF contributions:
| Activity type | VFL rate |
|---|---|
| Buy-resell (BIC) | 1.0% |
| Services (BIC) | 1.7% |
| Liberal professions (BNC) | 2.2% |
Eligibility conditions
Your reference tax income N-2 (per household share) must not exceed €27,478 (2026 threshold).
Is the VFL advantageous?
| Situation | VFL advantageous? |
|---|---|
| Single, no other income, revenue < €30,000 | No — progressive brackets are often cheaper |
| Couple, spouse with high income | Yes — VFL isolates your micro income |
| Rental income or other sources | Yes — avoids inflating your marginal bracket |
| High revenue near caps | Yes — the flat rate is fixed |
Simulate your exact situation with our flat-rate withholding simulator.
How to opt for VFL?
- At creation: check the option during registration on the INPI one-stop shop
- During activity: request before September 30 for application from the following January 1
Filling out the 2042-C-PRO form
Step by step on impots.gouv.fr
1. Log in to your personal space on impots.gouv.fr
2. Access the supplementary declaration In the online declaration, at the "Income" step, check "Professional industrial and commercial income" and/or "Professional non-commercial income" according to your activity.
3. Identify the correct boxes
Boxes to fill by situation
Without flat-rate withholding (standard regime)
| Activity | Box | Content |
|---|---|---|
| Buy-resell (BIC) | 5KO (declarant 1) / 5LO (declarant 2) | Annual gross revenue |
| Services (BIC) | 5KP / 5LP | Annual gross revenue |
| Liberal (BNC) | 5HQ / 5IQ | Annual gross revenue |
With flat-rate withholding
| Activity | Box | Content |
|---|---|---|
| Buy-resell (BIC) | 5TA / 5UA | Annual gross revenue |
| Services (BIC) | 5TB / 5UB | Annual gross revenue |
| Liberal (BNC) | 5TE / 5UE | Annual gross revenue |
Important: Always declare your gross revenue, i.e., the total amount collected before any deduction. The administration calculates the deduction itself.
Complete tax calculation examples
Example without VFL
Profile: Sophie, web developer (BNC), single, 2025 revenue = €50,000
| Step | Calculation | Amount |
|---|---|---|
| Gross declared revenue | — | €50,000 |
| BNC deduction (34%) | 50,000 × 34% | -€17,000 |
| Taxable micro income | — | €33,000 |
| Bracket 1 (0 → €11,497) | 11,497 × 0% | €0 |
| Bracket 2 (€11,497 → €29,315) | 17,818 × 11% | €1,960 |
| Bracket 3 (€29,315 → €33,000) | 3,685 × 30% | €1,106 |
| Total tax | — | €3,066 |
| Effective tax rate | 3,066 / 50,000 | 6.1% |
Example with VFL
Same profile: Sophie, 2025 revenue = €50,000
| Step | Calculation | Amount |
|---|---|---|
| Gross revenue | — | €50,000 |
| VFL BNC (2.2%) | 50,000 × 2.2% | €1,100 |
| Effective rate | 1,100 / 50,000 | 2.2% |
In this example, the VFL saves €1,966. However, if Sophie were part of a couple with a spouse earning modest income, the standard deduction could be better thanks to the family quotient.
Common mistakes to avoid
1. Declaring net revenue instead of gross
You must declare your gross collected revenue, before any deduction. The deduction is calculated automatically by the administration.
2. Forgetting to declare with VFL
Even with flat-rate withholding, you must fill out the 2042-C-PRO. Missing it can trigger automatic taxation.
3. Using the wrong boxes
Boxes differ with and without VFL. Double-check you're filling the right section.
4. Not declaring €0 revenue
Even without revenue, fill in the declaration with €0. Silence means non-declaration, not zero income.
Summary: tax declaration 2026
- Obligation: annual 2042-C-PRO declaration, even with VFL or €0 revenue
- Dates: May-June 2026 for 2025 income
- Boxes: 5KO/5KP/5HQ (without VFL) or 5TA/5TB/5TE (with VFL)
- Amount: always gross collected revenue, not profit
- Deduction: 71% (sales), 50% (services BIC), 34% (liberal BNC)
- VFL: 1% (sales), 1.7% (services BIC), 2.2% (liberal BNC) — subject to income conditions
- Use our simulators to calculate your exact tax and choose the best option