New 46% social charges on profit for SARL/EURL

So...?

yes, quite frankly there is

I have a SARL here and an accountant if you need help. But I am fairly confused by the title of the discussion. To my best knowledge there is no "social charge" on profits (benefice), only tax. Last year that was 15% until 30K profit and 30% over that. The 46% social charge sounds like what we as employers have to pay on salaries paid out (and then the poor guy is further taxed and socially charged).

If you take your gross income, deduct the expenses, about 40% of this net income arrives after tax and contribution as cash to your or your employee's pocket. This is about 60% in Canada and the States, by the way. But it is more expensive to run a business in all of (continental) Europe than overseas (not sure about the UK).

The numbers above are specifically for SARLs, I know nothing about AEs.

Is there a problem????

Belarus ! I could give you Gerard Depardieus number

poor you

Andrew,

What do you suggest for people who need to earn over the 33,000 Euros threshold that the AE provides? My expenses exceed the monthly income on AE after the 24% is taken.

I think all of us need a structure that provides for higher earnings as life is not getting any cheaper.

Thanks,

Rebecca

Hi Brian , I have had a micro enterprise & recently I was paying 60 percent social charges as well as having to pay an accountant!

even if you make a loss you have to pay around 1600 euros, there is no allowance, so I was working to pay the wages of fonctionnaires who start at 21 retire at 45 & have twenty weeks holiday a year, you may think that I have a grudge

absolutely ridiculous so I changed to auto entrepreneur before chrismas even though the chambre de commerce said I couldent for a year & now pay 22percent of gross profit which will be very small & well below the tva limit

The tva people are thieves of the biggest order so I do,t deal with them

Brian,

What if there is a partner? Where does the tax rate for social charges go to then?

Thanks,

Rebecca

Is there no way around this crazy tax situation, what with talk about closing down AE and these very high charges is it any wonder that some French and English people living in France are working the system, working for six months and then claiming chomage? The coffers will have less and less money being paid into them and hence the lifestyle (well the good healthcare at least) will not have sufficient funds to keep going and will fail. There is talk of 2020 being the date for problems with health and wealth (in the form of pensions and benefits) in France. Can you not buy a company off the shelf in the UK and set yourself up as an employee of said company and pay less tax here? It is becoming ridiculous and reminds me a lot of the problems we encountered in the 1980's with people finding it easier to stay home and claim than work or trick the system.

Exactly what I thought too, Tracy, it's the standard charges that we all pay :-(

Hi Brian, I was an AE but am now 'entreprise individual' and also registered for TVA with a similar turnover to yours. The 46% is not a new 'tax' as far as I am aware, it is the compulsory social charges that have always been applied to companies of any kind. Do you have a link to the announcement so I can check it out please as I can't find any reference to it and it sounds scary.

You're not alone, Brian, as you know and Tracy has said "this is France" and it was only going to get worse tax wise with Hollande :-(

I have a SNC and even though we're juggling between IS and IR, we've counted on around 45% in charges alone...! Obviously they're very low in the first couple of years trading when you pay the forfait but then there's the third year which always seems to be a make or break year for French businesses when the difference is clawed back and many business simply can't pay!

Welcome to SFN and France Brian. This is the way it is for those of us who are self employed in France, pay 46% of profits or pay 25% of turnover(as AE), what a choice. That is why there are not many small businesses here, we are self employed for the lifestyle not to become millionaires. The majority of people come to France though, for the lifestyle, not to earn a fortune.