What is the difference between flat-rate and progressive tax?

The flat-rate system deducts a fixed percentage from your revenue (1% to 2.2%) each month/quarter. The progressive scale applies tax on your revenue after a flat deduction, according to standard brackets. Flat-rate is advantageous if your marginal tax rate exceeds the flat-rate.

When should I fill in the 2042-C-PRO form?

The 2042-C-PRO form is filed each year between April and June, at the same time as your regular income tax return on impots.gouv.fr. You must report your gross annual revenue (before deductions) from the previous year.

Can I change my tax option during the year?

No, the flat-rate option must be chosen before September 30 for the following year. If you're starting your activity, you can opt in during registration or within 3 months of creation. The change takes effect on January 1.

IntermediateTaxRead 15 minUpdated March 2026

Opt for the flat-rate tax

Pay your tax directly on your revenue. When it's advantageous and how to opt in.

The 5 key steps

1Check eligibility (RFR N-2 < €28,797 per share)
2Use our simulator to compare flat-rate vs progressive
3Apply before September 30 (for the following year)
4Or check the option during registration
5The rate is deducted directly from each URSSAF declaration

Guide Micro-Entreprise

Editorial team · Business law & Taxation

Updated on 12 February 2026

Verified on official sourcesSources: URSSAF, DGFiP, LegifranceOur methodology

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