How do you calculate net income as a French auto-entrepreneur?
Net income as a French auto-entrepreneur is estimated by subtracting social contributions, possible income tax, business expenses and a safety reserve from collected revenue.
Explanation
To calculate your net income as a French auto-entrepreneur, start with the revenue you actually received. Do not use signed quotes or unpaid invoices when assessing cash flow.
Then apply the social contribution rate for your activity type: goods sales, services, BNC liberal activity or CIPAV activity. If you selected the lump-sum tax payment, add the corresponding tax rate.
Finally, subtract business expenses. Even if the French micro-enterprise regime uses simplified tax rules, your real expenses still affect your cash flow. Equipment, software, subscriptions and travel costs reduce what you can actually keep.
Formula / method
Estimated net income = collected revenue - contributions - possible tax - business expenses - reserve
Concrete example
If you collect €2,000 from services, pay about €424 in social contributions, have €200 in expenses and set aside €100 as a reserve, your estimated available income is about €1,276.
Common mistake
Be careful with the word “net”. Estimated net income is not always your exact taxable income. Your final income tax can depend on your household situation if you did not choose the lump-sum tax payment.
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