Are you a Youtuber or a web application developer, and feel that tax issues are getting ahead of you? This article is for YOU.
Many of you don’t file any tax returns in France, taking a real tax risk. On the one hand, these sums are subject to income tax, and on the other, tax audits of this type of income are becoming more widespread.
In this respect, French tax legislation is very clear. As a French tax resident :
- Taxpayers must declare income earned via Youtube and other web platforms;
- More generally, taxpayers must declare income earned on the Internet.
Quel régime fiscal applicable à ces revenus alors ?
As a general rule, income earned by a Youtuber and/or web application developer should be declared in the BNC(Bénéfices Non Commerciaux) category. Bear in mind that different sub-regimes exist within the BNC regime. In fact, it is the amount of income received that determines the best applicable tax regime, it being specified that the amount of income received during the financial year is not the only criterion for determining the most favorable tax regime.
Finally, it is important to consider which status is applicable to such an activity:
- Self-employed status known as “Auto-entrepreneur” (no VAT but RSI contributions and taxation at 25% of sales);
- Above 32,900 euros in sales, the individual will have to opt for another status, such as an Entreprise Unipersonnelle à Responsabilité Limitée (EURL) or a Société par Actions Simplifiée Unipersonnelle (SASU).
Please note: in some cases, international tax issues need to be taken into account. The international tax treaty between France and the other country concerned must be taken into account.
Author: Maud Mestre, Manager Tax Department @Ruff & Associés
