For many micro-entrepreneurs in France, taxation can feel confusing. One of options is the “versement libératoire de l’impôt sur le revenu” (sometimes called the flat-rate discharge payment of income tax) – in brief, it allows micro-entrepreneurs to simplify how they pay income tax and, in some cases, reduce their overall tax burden. A lot of my clients have difficulty making their decision whether to opt in for this regime when creating their micro-entreprise (or later on). This article aims to explain this option in more detail as understanding how it works can help you decide whether it is the right choice for your business.

How does income tax work without Versement Libératoire?

Please note, that under classic taxation scheme, monthly or quarlerly payments to URSSAF are not taxes, but social security contributions. So micro entreprise pays URSSAF throughout the year, and then the next spring has to declare his or her revenue on the personal income tax declaration and pay income tax.

In France, income tax is calculated on a progressive scale per household: all revenues of household memners are added together, and divided by household tax parts. The result determines which tax brackets the income falls into and how much tax will be paid.

For micro-entrepreneurs, as they are not allowed to deduct real expenses, there is a flat rate deduction (abbatement forfataire): the full annual turnover must be declared in the declaration, and the tax office will calculate the taxable amount (50% of turnover for commercial and artisanal services (BIC), 64% of turnover for liberal/non-commercial services (BNC) and 29% of the turnover for sales of goods, 305€ being the minimum deduction possible).

What Is the Versement Libératoire?

The versement libératoire is an optional tax system available to micro-entrepreneurs. Instead of paying income tax through the normal progressive income tax scale, you pay it directly to URSSAF at the same time as your social contributions.

The tax is calculated as a fixed percentage of your turnover (chiffre d’affaires). This means you know exactly how much tax you owe each time you declare your revenue.

The main advantage is simplicity: tax is paid regularly throughout the year, usually monthly or quarterly, together with your social contributions.

Tax Rates

The rate applied depends on the type of activity carried out by the micro-entrepreneur:

• 1% of turnover for activities involving the sale of goods or accommodation (except LMNP which has it’s own rules)
• 1.7% of turnover for commercial or artisanal services (BIC services)
• 2.2% of turnover for liberal professions (BNC)

For example, if a freelancer providing services generates €30,000 in turnover during the year and is eligible for the 1.7% rate, the income tax paid through the versement libératoire would be €510.

Who Can Use It?

Not every micro-entrepreneur can choose this option. The main condition is related to the household’s taxable income.

To qualify, the revenu fiscal de référence (RFR) of your household from two years earlier must not exceed a specific threshold. The threshold changes every year, it is for example €29,315 per tax share for eligibility in 2026 (revenues of 2024, declared in 2025). The threshold increases depending on family size because it is based on the French “quotient familial” system.

To check, consult your personal tax declaration, for the year in question. On the first page, find your “revenue fiscal de refence”, and number of tax shares (nombre de parts). Divide the revenue by the number of shares, and see if the resultn is below the threshold.

In addition, you must still meet the general conditions for the micro-entrepreneur regime, including remaining below the turnover thresholds applicable to this business structure.

When and How to Apply

Newly created businesses can choose the option at the start of their activity – when creating their business via the INPI website, or within 3 months after creating their micro entreprise, provided no URSSAF declaration have been made.

For existing business, to benefit from the versement libératoire, you must request it through URSSAF.The request must generally be submitted before 30 September for it to apply starting from 1 January of the following year. If you later decide that the system is not advantageous, you can also cancel the option by the same deadline.

Attention! If you are registered, it is your responsiblity to check your situation every year – once you have your avis d’imposition in July/August, you have to calculate if you are still under the threshold for the next year. If you are not, you must opt out by the 30th of September on the URSSAF website.

You’re not sure if you have this option currently – check on your last URSSAF declaration, or in your account on their website.

To opt in or out, in your URSSAF account use the messaging service and select “versement liberatoire” as the subject.

Do You Still Have to File an Income Tax Return?

Yes. Even if you choose the versement libératoire, you must still declare your annual turnover in your income tax return. There are different boxes to fill out, depending on whether you have opted for the versement liberatoire or not.

The declared amount is still used by the tax authorities to calculate your revenu fiscal de référence and determine the tax rate applicable to any other income in your household.

When Is It Advantageous?

The versement libératoire can be beneficial in several situations:

• You prefer predictable taxation based directly on turnover.
• Your household income places you in a higher tax bracket, meaning the flat rate may be lower than your marginal income tax rate.
• Your micro-entreprise income is a large part of the total household income
• You want to avoid large tax adjustments the following year.

It is usually more expensive if

• Your overall income is below the taxable threshold (or in some cases in the lowest tax bracket)
• You are eligible for significant tax reductions
• Your micro entreprise revenue is low compared to other revenue sources.

Bear in mind, that prelevement liberatoire is different from prelevement à la source. Prelevement à la source is an advance on tax to be paid – if you pay too much, you will be reimbursed when you file your tax declatation. Prelevement liberatoire is definitive. It is never recalculated or reimbursed. So if you opt in, but your revenues are low and and you wouldn’t be taxed under the progressive scale, the tax you’ve paid is money lost.

Example calculations

The simplest case to show the difference is when the business owner is the only person in the tax household, and has no other source of income. Let’s compare the following two examples:

Person 1: Annual revenue 40 000 from their micro-entreprise with liberal activity (BNC or non-commercial revenue):

	With versement liberatoire	Without versement liberatoire
Versement liberatoire	40 000 x 2.2% = 880€	0€
Taxable income (after reduction 34% for BNC micro regime)	0€	40 000 x 66% = 26 400€
Income tax (2025 rates for 2026 declaration)	0€	11 600 @ 0% – 0€ 26 400-11 600 @11%= 14 800 x 11% = 1628€
Total paid	880€	1628€
Economy	748€

Person 2: Annual revenue 20 000 from their micro-entreprise with liberal activity (BNC or non-commercial revenue):

	With versement liberatoire	Without versement liberatoire
Versement liberatoire	20 000 x 2.2% = 440€	0€
Taxable income (after reduction 34% for BNC micro regime)	0€	20 000 x 66% = 13 200€
Income tax (2025 rates for 2026 declaration)	0€	11 600 @ 0% – 0€ 13 200-11 600 @11%= 1600 x 11% = 176€
Total paid	440€	176€
Economy		264€

If your household revenue structure is more complicates, you can simulate the income tax to be paid on the tax website.

Key Takeaways

The versement libératoire is a useful tool for simplifying taxation for micro-entrepreneurs. It allows you to:

• Pay income tax at the same time as your social contributions
• Apply a simple flat rate to your turnover
• Avoid uncertainty about your tax bill at the end of the year

Nevertheless, the choice should always be evaluated based on your overall household income and tax situation. For some entrepreneurs it provides a clear advantage, while for others the standard tax system may remain more favorable.

Please do not hesitate to contact me if you would like to receive personalised information about your business project.

Important: Every situation is different and may need professional advice. The information on the Compte Plus website is general and should not replace legal, accounting, or tax counsel. If in doubt, contact a specialist for tailored advice.