When an entrepreneur does not opt for the discharge payment, the income generated by his activity is taxed at the progressive income tax scale (IRPP). Income benefits, before taxation, from an allowance. Proportional, it depends on the nature of the activity carried out:
- Trading, housing supply, purchase-resale: 71%
- Commercial and similar services: 50%
- Non-commercial service provision: 34%
Once the net taxable income has been determined, it should be added to the other income of the tax household and the whole subject to the IRPP scale. There are several levels: 0%, 11%, 30%; 41% or 45%. In reality, the rate varies according to the tax bracket in which the entrepreneur is located. Using the tax return estimator is important there.
Is the discharge payment always advantageous for a entrepreneur?
You will understand that a entrepreneur does not always have an interest in opting for the final payment of the IR. When he is not taxable at the IRPP, this option has the effect of making him pay taxes, while he may not be liable. If you are in the 0% tax bracket, do not opt for the discharge payment.
Concretely, the reasoning must take into account several parameters relating to your “tax household”; and in particular its composition (total number of shares) and the size of the taxable income. The activity carried out by the entrepreneur and the total amount.
It is easy to notice the situations in which the option for the discharge payment is judicious. These are cases 1 and 2. In the 3rd and 4th case, the option is unfavorable.
How to opt for the final payment of the IR?
A entrepreneur can opt for the discharge payment from the creation of his micro-enterprise. All you need to do is check the box provided for this purpose in the declaration form for the start of activity (P0 entrepreneur). For traders and craftspeople, this is the “Yes” box in box 16 “Tax options outside EIRL”. For liberal professionals, this is the “Yes” box in Box 8.
Failing to be made during the creation of the micro-enterprise, the option for the final payment of IR can be made on simple request, before September 30 of each year, for an application from the Next year. The recipient of the mail is the social security for the self-employed (SSI) or the URSSAF (for liberal professions).
A EURL can, like all other companies, benefit from the VAT exemption. This device allows him to escape taxation and therefore not have to repay the VAT collected on his sales. In return, however, it cannot deduct VAT on its purchases. Here is a file on the VAT-based franchise for a one-person company with limited liability (EURL).
The conditions to be met for a EURL to benefit from VAT exemption
A EURL can benefit from an exemption from VAT, by opting for the basic franchise. To do this, it must ensure that the turnover it achieved in the previous year did not exceed:
- € 85,800 for trading activities, sales to be consumed on site or accommodation,
- € 34,400 for other services.
Its income tax regime has no impact on the application of the exemption. The EURL can, in fact, be submitted:
- Income tax (in the BIC or BNC category),
- Or the corporate tax.
When the constitution of the EURL occurs during a calendar year , it is appropriate to apply a pro rata these thresholds. The latter must take into account the number of actual days of exercise of the activity.