Micro-enterprise: standard allowances and profit taxation

Under the micro-enterprise scheme, the tax authorities do not deduct your actual expenses. They apply a standard allowance to your turnover: €71 for the sale of goods, €50 for services (BIC taxable income), and €34 for freelance activities (BNC taxable income), with a minimum of €305. The resulting amount is your taxable profit, subject to income tax along with other household income, unless you opt for the simplified tax payment scheme.

This page is based on information sheet F23267 from Service-Public, impots.gouv.fr, economie.gouv.fr, and the BOFiP (BOI-BIC-DECLA-20). It does not cover: the reference tax income threshold that determines eligibility for the flat-rate tax payment, as two official sources provide different amounts; the deadlines for opting for the actual profit regime; details of business capital gains; or the tax calculation itself.

The abatement rates

These rates are the same from 2024 to 2026 according to the table on impots.gouv.fr. The BOFiP (version in force on 19/08/2026) specifies that the allowance applies to turnover excluding tax, and the F23267 fact sheet from Service-Public states, regarding withholding tax: "the taxable base is calculated on the turnover from which a standard allowance is deducted".

The allowance cannot be less than €305. For a mixed activity, fact sheet F23267 states that the allowances specific to each activity apply cumulatively and that "the minimum allowance is doubled to €610." This doubling rule appears only in this fact sheet among the sources consulted.

Examples from sheet F23267, for a turnover of €65,000 in 2025: in BIC service provision, the allowance of 50 % is €32,500 and the taxable profit is €32,500; in BNC liberal activity, the allowance of 34 % is €22,100 and the taxable profit is €42,900.

Furnished tourist accommodations

The tax allowance rate for furnished tourist accommodations varies from year to year. For 2025 income declared in 2026, form F23267 indicates 50 % for classified furnished accommodations and bed and breakfasts, and 30 % for unclassified furnished accommodations. For 2024 income, the rates were 71 % and 50 %. The form does not provide a rate for 2026 income. The table on impots.gouv.fr (updated on October 14, 2026) indicates 50 % for classified furnished accommodations and 30 % for unclassified furnished accommodations in 2026: review both sources before filing your tax return.

In case of a change of activity

If your business changes during the year, the BOFiP plans to compare the revenues of each period, "adjusted pro rata temporis", and to apply its abatement rate to each period.

Your actual expenses are not deducted.

Service-Public states it clearly: "Therefore, it is not the actual expenses that are deducted." Impots.gouv.fr clarifies: "You do not deduct your professional expenses for their actual amount."«

If your expenses are high, the same page adds: "It is up to you to consider opting for the actual tax regime." Service-Public (fact sheet F37398) indicates that this option is available even if you meet the revenue threshold. The 2026 thresholds are listed on our dedicated page (€203,100 for sales, €83,600 for services and freelance activities).

How profit is taxed

Without a flat-rate tax payment, professional income is "subject to the progressive income tax brackets" and added to the other income of your tax household (economie.gouv.fr, article written on 17/04/2026).

The lump-sum payment

This option allows you to pay tax along with social security contributions, in a single payment to the Urssaf, at a rate applied to turnover:

The application must be submitted to the Urssaf (French social security agency) when registering the business, or within three months of starting the business, or during the business activity before September 30th for application the following year. According to economie.gouv.fr, income subject to the flat-rate tax payment is taken into account when determining the reference tax income. A reference tax income ceiling determines eligibility for this option; its amount is not specified here (two official sources differ).

Declare: 2042-C-PRO

Each year, micro-entrepreneurs complete their annual income tax return with the supplementary form 2042-C-PRO, even if they have opted for the simplified tax payment scheme. According to economie.gouv.fr, they simply need to report their turnover (BIC) or revenue (BNC); the tax authorities will then calculate the allowance and taxable profit.

In the online tax return, impots.gouv.fr states, without a final payment:

• box 5KO for the sale of goods and the provision of accommodation; ;
• box 5KP for the provision of services and furnished professional rentals; ;
• box 5HQ for non-commercial professional income.

With the withholding tax, the page refers to boxes 5TA, 5TB or 5TE depending on the activity.

Capital gains and losses from the sale of business assets are, according to the BOFiP, determined and taxed under the general rules, subject to article 151 septies of the CGI.

Tax breaks for micro-enterprises: a numerical example (fictitious profile)

Situation. Nadia is a consultant, self-employed under the BNC (non-commercial profits) tax regime, operating as a micro-enterprise. Her projected revenue for 2026 is €60,000. Her actual business expenses are €28,000. These figures are hypothetical for this fictional profile.

Issue. Is his standard deduction higher or lower than his actual expenses?

Strategy. Calculate the taxable profit under the micro-enterprise scheme (34 %), then compare it to the profit obtained with the actual expenses.

Result.

In this scenario, his expenses exceed the €7,600 allowance. This is the case mentioned by impots.gouv.fr, which suggests considering the actual expense method. The calculation ignores social security contributions, which vary depending on the method, the accounting requirements of the actual expense method, and the tax itself. If the flat-rate withholding tax at 2.2% (%) had been applied, it would have amounted to €1,320 on €60,000, subject to income conditions not detailed here.

Another case: for a turnover of €800 in BNC, 34 % make €272, less than the minimum; the allowance taken is €305 and the taxable profit is €495.

This profile is fictitious. The figures illustrate the calculation and do not predict your situation.

Tax breaks for micro-enterprises: what changes depending on your situation

• The nature of the activity : sales, services, liberal professions, furnished tourist accommodation, mixed activity.
• The level of your actual expenses compared to the abatement.
• Your option for the flat-rate payment or for an actual regime.
• Your other household income, which are added to the taxable profit.
• The level of your contributions, which do not follow the same rules depending on the regime.

The rule depends on your situation; check before deciding.