While reading the news today, I came across a frightening piece of news: the destruction of the auto-entrepreneur scheme is included in the government's 2013 budget proposal.
The scheme will not be directlhy destroyed, but auto-entrepreneurs will have to pay the same social charges as a normal entrepreneur individuel.
As it can be seen on selon http://www.rsi.fr/cotisations/artisans-commercants/cotisations-minimales.html, the minimum annual contributions is €1583 for a commerçant or artisan. The pension contributions for the liberal professions (e.g. translators) are slightly different.
In addition to these minimum contributions, the CFE tax, formerly known as taxe professionnelle, has a minimum amount beween €200 and €2000 per year as decided by each commune.
Many auto-entrepreneur businesses will no longer be able to survive under these conditions. Most auto-entrepreneurs earn less than the minimum salary SMIC.
Sylvia Pinel, Ministre de l’Artisanat et du Commerce, had promised a wide consultation and ordered reports. The PM Ayrault has, by programming the destruction into the 2013 budget, cut all social dialogue with those concerned out and presented a fait accompli, except that the budget is yet to be voted.
If you are concerned as an auto-entrepreneur, first of all sign the petition on
Whatever you can do to contact MPs, the press, or anyone else who might do anything, can only help, but let us have no illusions. Hollande hates the rich, and he clearly also hates the self-employed, whether or not they live below the poverty limit. Being self-employed in France is seen as a provocation by these socialists who have not evolved the last 100 years or more. It makes you an evil capitalist in their eyes. They prefer to see you unemployed rather than self-employed.
There will be 6000 civil servants more in 2013, an increase for the first time since 2003. There is no money for this, and at the same time the government plan to destroy more than 1 million auto-entrepreneurs. France is accelerating into a concrete wall. What they do is totally insane.
If you are an auto-entrepreneur, how would you react to this budget if voted through? Will you accept to pay the standard social charges that are calculated differently for nearly 10 different charges, based on your income two years ago, then recalculated when the actual income is known by the RSI? That system is totally chaotic and obscure. Will you move your activity abroad? Will you shut down your activity?
Don't forget that the CFE tax due in December is due if you are in activity on the 1st January that year. The year of creation and the two following years, you are exonerated. So if you declared yourself auto-entrepreneur in 2010, 2012 is the last year you don't pay the CFE. If you still exist as self-employed on 1st January 2013, you will be billed in December 2013. So 31 December is the last day to shut down such an activity to avoid the CFE 2013.
Hollande and his comrades seem determined to make France completelhy unattractive for business. I am considering my options and will certainly not accept a return to the horrible standard scheme, so if that is the only option for staying in business, I will shut down. And I am looking at an emigration to Romania or Bulgaria where you can buy a 3-bedroom house cash for €30,000 and pay 16% or 10% tax respectively. There is still growth in these countries, contrary to the old western Europe, and their public debts are very low.
France is going to the dogs. As the rats, I'll be leaving the sinking ship. Rats are not completely stupid. More clever than Hollande and his comrades in any case.
Articles about the planned destruction: