Micro-entrepreneurs, you have until September 30 to choose the payment in full discharge.

The conditions for applying for the flat-rate withholding tax are as follows:

- You are a microentrepreneur

- Your household's reference tax income (RFR) for the year before last must not exceed 26,070 euros per family share.

- Your sales excluding tax for the previous year must not exceed the micro-business threshold, i.e. 77,700 euros in 2024.

How to choose the lump-sum payment

If you are setting up a micro-business, you must choose the option before the end of the 3rd month following the month in which the business was created.

In the case of an existing micro-business, you have until September 30, 2024 at the latest to opt for the payment in full discharge. This will apply to income earned on or after January 1, 2025.

The request must be made to Urssaf.

Effects of opting for the lump-sum payment at source

- You pay your social security contributions and income tax in instalments throughout the year, on a monthly or quarterly basis, as sales are received, with no regularization at the end of the year.

- With the payment in full discharge, income from micro-businesses is not subject to the progressive income tax scale.

The flat-rate tax is 1.7% for commercial and similar services, and 2.2% for non-commercial services.

So it's up to you to decide whether the payment in full discharge is financially more advantageous for you than the traditional micro-tax system.

Please note that the income from your micro-business is still taken into account when calculating your reference tax income.

- Even if you opt for payment in full discharge, you must continue to file an annual income tax return on your personal space on the impots.gouv.fr website.

On your supplementary income tax return (n° 2042-C Pro), you will enter the sales generated by your micro-business. You will enter your sales in the box " Microentrepreneurs who have opted for the flat-rate income tax deduction ".

Don't forget to cancel the advance payment calculated by the tax authorities on your income for the withholding tax when you opt for the lump-sum payment at source by logging on to impôt.gouv.fr > espace particulier > Gérer mon prélèvement à la source.

Leaving the lump-sum payment

- If you no longer qualify for this scheme (see above)

- on request to Urssaf by September 30th of the year at the latest, for application from January 1st of the following year.

To find out more, see the Ministry of the Economy fact sheet