a: Micro-enterprise scheme

1. For the taxation of their profits, companies whose turnover excluding tax, adjusted if necessary in proportion to the operating time during the reference year, does not exceed, in the previous calendar year or in the penultimate year:

are subject to the system defined in this article 1° €188,700 in the case of companies whose main business is the sale of goods, objects, supplies and foodstuffs to be taken away or consumed on the premises or the provision of accommodation, excluding the direct or indirect letting of furnished residential premises or premises intended to be let furnished, other than those mentioned in 2° and 3° of III of Article 1407;

> €77,700 in the case of companies whose main business is the sale of goods, objects, supplies and foodstuffs to be taken away or consumed on the premises or the provision of accommodation, other than those mentioned in 2° and 3° of III of Article 1407 2° €77,700 in the case of other businesses.

When a business's activity falls into the two categories defined in 1° and 2°, the scheme defined in this article only applies if the business's overall turnover excluding tax complies with the limit mentioned in 1° and if the turnover excluding tax relating to activities in the category mentioned in 2° complies with the limit mentioned in the same 2°.

The taxable income, before taking into account capital gains or losses from the sale of assets used in the business, is equal to the amount of turnover excluding tax less a deduction of 71% for turnover from activities in the category mentioned in 1° and a deduction of 50% for turnover from activities in the category mentioned in 2°. These allowances may not be less than €305.

The capital gains or losses referred to in the fifth paragraph are determined and taxed under the conditions set out in articles 39 duodecies to 39 quindecies, subject to the provisions of l'article 151 septies. For the application of the previous sentence, the allowances mentioned in the fifth paragraph are deemed to take account of depreciation carried out using the straight-line method.

The thresholds mentioned in 1° and 2° are 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.

2. The following are excluded from this scheme:

a. Taxpayers who operate several companies whose total turnover exceeds the limits mentioned in 1° and 2° of 1, assessed, where applicable, under the conditions set out in the fourth paragraph of the same 1;

b. (Repealed);

c. Companies or bodies whose profits are taxed under the partnership regime defined in Article 8, with the exception of limited liability companies whose sole shareholder is a natural person managing that company;

d. Legal entities liable for corporation tax;

e. Transactions involving real estate, goodwill or shares in real estate companies, the results of which must be included in the income tax base for industrial and commercial profits;

f. (Repealed);

g. The transactions referred to in 8° of I of Article 35 ;

h. Taxpayers all or part of whose business assets are included in a trust estate pursuant to a trust transaction defined in article 2011 of the Civil Code;

i) Taxpayers who carry out an occult activity within the meaning of the second paragraph of article L. 169 of the tax procedures book.

j) Taxpayers who receive income from a real estate investment fund taxable under the conditions defined in e of 1 of II of Article 239 nonies.

3. The taxpayers concerned shall directly report the amount of annual turnover and capital gains or losses realised or suffered during that same year on the declaration provided for in Article 170.

4. Companies falling within the scope of this article may opt for an actual taxation system. This option must be exercised within the deadlines applicable to the filing of the declaration provided for in article 170 submitted in respect of the year preceding that in respect of which this same option applies. However, where such companies were automatically subject to an actual taxation system for the period preceding that in respect of which they are brought within the scope of this article, they exercise this option within the time limits applicable to the filing of the declaration submitted in respect of the year in respect of which the option applies. In the case of a business start-up, the option is exercised within the deadlines applicable to the filing of the return submitted in respect of the year of the first period of activity.

The option for an actual taxation scheme is valid for one year and tacitly renewed each calendar year for one year. Companies may renounce this option within the deadlines applicable to the filing of the return submitted in respect of the results of the year preceding the year in respect of which the renunciation applies.

5. Companies that have not exercised the option referred to in point 4 must keep and present, at the request of the administration, a daybook used on a daily basis and showing details of their professional receipts, supported by invoices and any other supporting documents. They must also, where their main business is to sell goods, objects, supplies and foodstuffs to be taken away or consumed on the premises, or to provide accommodation, keep and present, at the request of the administration, a register summarised by year, showing details of their purchases.