France Travailleur Indépendant — Déclaration 2042-C-PRO & TVA

Establish the client's legal status, fiscal régime, and VAT position before touching any numbers. The choice between micro-BNC/BIC and régime réel (déclaration contrôlée or réel simplifié) drives every downstream calculation. Confirm whether the turnover ceiling for micro (EUR 77,700 for services/BNC; EUR 188,700 for goods/BIC) was breached and whether the client has optionally elected régime réel. Also confirm TVA franchise-en-base eligibility (EUR 36,800 services; EUR 91,900 goods).

Compile gross revenues and, for clients under régime réel, all deductible professional expenses (charges). Under micro, the statutory flat abatement applies (34% BNC, 50% BIC services, 71% BIC goods) — no actual expense deduction is possible. Under régime réel BNC (déclaration contrôlée), expenses are cash-basis (date of payment). Under BIC réel simplifié, accruals apply. Identify any deductible cotisations sociales (TNS) and the CSG déductible portion (6.8% of the 9.2% total CSG rate).

French TNS (travailleurs non-salariés) pay cotisations to the Sécurité Sociale des Indépendants (SSI, now integrated into URSSAF) based on net profit. URSSAF levies provisional acomptes during the year based on N-2 profit, then adjusts once the actual N profit is declared. Reconcile the acomptes paid with the true liability (using the ~40-45% effective TNS rate on net profit), quantify any regularisation due or credit, and confirm ACRE status if applicable (50% reduction in year 1).

Applicable only to clients who are registered for TVA. Determine the TVA régime: franchise en base (no return required), régime simplifié d'imposition (RSI — annual CA12 with two quarterly acomptes), or régime réel normal (monthly or quarterly CA3). Compute TVA collectée on outputs, TVA déductible on inputs (with pro-rata if mixed activities), and net TVA due or credit. Flag reverse-charge situations for intra-EU B2B services (autoliquidation, report via DES).

Translate the business profit (or micro turnover with abatement applied by the tax authority) into the personal income tax return. For BNC régime réel, report net bénéfice on Form 2042-C-PRO box 5QC (liberal profession) or 5HC (other BNC). For micro-BNC, report gross turnover in box 5TE (the 34% abatement is applied automatically). For BIC, use the relevant 2042-C-PRO boxes (5KP/5LP for réel; 5KO/5LO for micro-BIC services). Deduct CSG déductible and PER contributions from revenu brut global. Apply the quotient familial, décote if applicable, and calculate the final IR liability.

French income tax is collected via prélèvement à la source (PAS). For TNS, the DGFiP levies monthly or quarterly acomptes contemporains (advance payments debited from the bank account) based on the prior year's declared profit. After the annual declaration, a settlement is computed: if acomptes paid exceed the final IR liability, a refund is issued (typically July–August N+1); if there is a shortfall, the balance is collected in September N+1 (spread if over EUR 300). Optionally modulate the acompte downward if current-year profit will be significantly lower than prior year.