Self-entrepreneur scheme: micro-social contributions and flat-rate income tax payment based on turnover

The Economic Modernisation Act of 4 August 2008 allows self-employed people under the micro-BIC or micro-BNC regime to opt to have all their social contributions calculated as a percentage of the turnover or receipts collected each month or quarter ("micro-social" scheme, Article L. 133-6-8 of the Social Security Code). Subject to a household income condition, they can also opt for a final income tax payment of 1%, 1.7% or 2.2% of turnover depending on the activity (Article 151-0 of the General Tax Code). Decree No. 2008-1349 sets the social contribution rate at 12% for sales activities and 21.3% for services provided by craftspeople and traders. The scheme applies from 1 January 2009; the amending finance act for 2008 allows the option for 2009 to be exercised until 31 March 2009.