TLDR: The versement libératoire de l’impôt can be beneficial for micro-entrepreneurs with modest income and a household with low or no other earnings, thanks to fixed, low rates (1%, 1.7%, or 2.2%) and simplified payment. However, it comes with significant restrictions, such as exclusion from the effective income tax rate calculation and ineligibility for certain tax exemptions.
What is the versement libératoire de l’impôt?
The versement libératoire de l’impôt is a tax regime allowing micro-entrepreneurs to pay income tax directly on turnover or revenue at flat rates. This system replaces the progressive income tax scale for business earnings, exempting taxpayers from declaring these earnings in the section for calculating progressive tax.
Applicable rates
The rates applied are:
- 1% for commercial or artisan activities with turnover below a certain threshold;
- 1.7% for commercial or artisan activities with turnover above a certain threshold;
- 2.2% for liberal professions.
Eligibility conditions
Opting for the versement libératoire is reserved for micro-entrepreneurs meeting two key conditions:
- The taxable household income from the penultimate year must not exceed the second bracket of the progressive income tax scale;
- The micro-entrepreneur must be registered under the micro-social regime.
Advantages of the versement libératoire
The main benefit lies in its simplicity and tax cost certainty:
- Fixed, low rates;
- No need to calculate net profit;
- Payment aligned with revenue collection.
Disadvantages and restrictions
Choosing the versement libératoire entails important limitations:
- Exclusion from the effective tax rate calculation;
- Ineligibility for net-profit-related exemptions;
- Separate taxation of professional capital gains;
- Stringent income conditions.
Income tax declaration
Even when opting for the versement libératoire, micro-entrepreneurs must still file an income tax return, reporting gross turnover or revenue per period.
Choosing between versement libératoire and progressive taxation
The choice depends on the taxpayer’s individual situation. Generally, the versement libératoire is more advantageous for micro-entrepreneurs with modest business income and a household with low or no other earnings. Progressive taxation may be preferable if the household’s total income is high or if the micro-entrepreneur qualifies for net-profit-related exemptions or tax credits.