Microentreprise

The Microentreprise is a French company form (see legal form ). This type of company was conceived for small businesses, or especially for employees who want to become self-employed. In 1996 , the European Commission recognized this type of company at European level .

Requirements for a microentreprise:

• A maximum of 10 employees may be employed,
• there may be a maximum corporate capital of 2 million euros, and
• an annual profit of 2 million euros must not be exceeded.

The special thing about this type of company is that microentreprises are exempt from VAT and that certain sales can be earned tax-free. The turnover can then simply be stated within the tax exemption on the normal income tax return that is incurred for every employee anyway (see tax return ). Another special feature is that no bookkeeping is required, which makes it easier to run a microentreprise and, in addition to the tax advantages, reduces costs.

For service providers, for example, 52 percent of the income is deductible, and for sales activities ( retail ) even 72 percent.

The permissible deductible turnover is limited to 27,000 euros ( service providers ) or 76,300 euros ( sales ). This is calculated per calendar year. If these maximum limits are exceeded, there is no longer any tax exemption and the entire turnover must be taxed. This is a major disadvantage of the Microentreprise, since the resulting tax burden poses a high risk of financial ruin, although or precisely because the company is doing well.

With the Microentreprise, a back door for fraudulent activities is opened due to this system. B. an attempt is made to distribute the profits to different tax returns of employees etc. for tax purposes.