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.

AdvancedTaxRead 9 minUpdated March 2026

2026 micro-enterprise VAT reform: the saga explained

Article 25, lowering to €25,000, mobilization, Senate withdrawal: recap of the aborted VAT reform and what applies in 2026.

The 4 key steps

1Understand the initial project (single €25,000 threshold)
2The mobilization of micro-entrepreneurs
3The withdrawal of Article 25 in the Senate
4The maintained thresholds in 2026

Guide Micro-Entreprise

Editorial team · Business law & Taxation

Updated on 24 March 2026

Verified on official sourcesSources: URSSAF, DGFiP, LegifranceOur methodology

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