4 key changes in 2019 that expat entrepreneurs in France should know about

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A reduction in the corporate tax rate.

Small and medium businesses with less than €7.63 million in turnover are taxed at the reduced rate of 15% on the first €38,120 of profits. Above this amount, the rate applied is 28% (not 33.33% as it used to be).

A new cap on revenues for the «Auto-entreprise».

The maximum amounts to be adopted for the coming year are : -70,000 € for services provided in the category of industrial and commercial profits (BIC) or non-commercial profits (BNC), -170,000 € for an activity selling goods, objects, supplies, food to take away, or for accommodation services (with the exception of the rental of furnished residential premises, for which the threshold is €70,000).

Assistance to unemployed entrepreneurs (ACCRE) who start or take over a business is extended from 1st January to all entrepreneurs, including those who are not registered with Pôle Emploi.

The ACCRE allows you to benefit from a blank year of social contributions provided that resources do not exceed the annual social security ceiling set for 2019 at 40,254 euros. At the same time, the system changes its name and becomes «Exemption from starting work».

Implementation of withholding tax at source (prélèvement à la source).

The withholding of income tax is effective as of January 1, 2019. Companies must now apply the rate forwarded by the General Directorate of Public Finance (DGFiP) on salaries, collect the corresponding amount, declare the amounts withheld and pay them back to the tax authorities.

By Faten Amamou Established in 2016, ESCEC is registered with the French Chartered Accountant Institute (Ordre des Experts-Comptables de Paris Ile de France). Founder, Faten Amamou, provides expertise in bookkeeping, auditing, tax, payroll and legal advice to companies of all sizes. Here she explains how she sees her role as a chartered accountant. Read Faten’s interview here and her columns here

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