French General Tax Code
In force1. The taxable profit of taxpayers who receive non-trading income whose amount excluding tax for the previous calendar year or the penultimate year, adjusted if necessary in proportion to the time worked during the reference year, does not exceed €77,700 is equal to the gross amount of annual receipts less a flat-rate allowance of 34%. This allowance may not be less than €305.
Capital gains or losses arising from the sale of assets used in the business are taken into account separately for the purposes of the income tax base under the conditions set out in article 93 quater, subject to the provisions of l'article 151 septies. For the application of the previous sentence, the allowance mentioned in the first paragraph is deemed to take account of depreciation carried out using the straight-line method.
The first threshold mentioned in the first paragraph is updated every three years in the same proportion as the three-yearly change in the first bracket of the income tax scale and rounded to the nearest hundred euros.
For the purposes of calculating the limit referred to in this paragraph 1, no account is taken of transactions involving assets allocated to the practice of the profession, compensation received on the cessation of the practice of the profession or the transfer of a client base, or fees retroceded to colleagues in accordance with the practices of the profession. On the other hand, account is taken of income earned by companies and groupings not subject to corporation tax of which the taxpayer is a member, in proportion to his rights in the profits of these companies and groupings. However, the tax treatment of these companies and groupings remains determined solely by the total amount of their revenue.
In respect of the year following exit from the tax regime provided for in article 96 and where the option mentioned in article 93 A had been exercised, the revenue mentioned in the first paragraph of this 1 is reduced, before application of the allowance provided for in the same first paragraph, by the amount excluding tax of the receivables held by the taxpayer at 31 December of the last year taxed in accordance with the procedures provided for in article 93 A.
2. The taxpayers referred to in 1 shall enter directly on the declaration provided for in Article 170 the amount of annual revenue and capital gains or losses realised or suffered during that same year.
3. (Repealed).
4. The taxpayers referred to in 1 must keep and, at the request of the tax department, present a document giving a daily breakdown of their professional income.
When kept by a taxpayer who is not a member of an approved management association, this document includes, regardless of the profession practised, the identity declared by the client as well as the amount, date and form of payment of the fees.
5. Taxpayers who wish to waive the benefit of this article may opt for the regime referred to in article 97.
This option must be exercised within the time limits set for filing the declaration referred to in article 97. It is valid for one year and tacitly renewed each calendar year for one year. Taxpayers may renounce this option within the time limits applicable to the filing of the return filed in respect of the results of the period preceding that in respect of which the renunciation applies.
6. The following are excluded from this scheme:
a. Taxpayers who carry on several activities whose total income, excluding income from public or ministerial offices, exceeds the limit mentioned in 1;
b. (Repealed);
c. Taxpayers all or part of whose business assets are included in a fiduciary estate pursuant to a trust operation defined in article 2011 of the Civil Code;
d Taxpayers who carry out an occult activity within the meaning of the second paragraph of article L. 169 of the tax procedures book.
