Re: Sorry, another tax question!!

French Finance

Sorry, another tax question!!


jetlag 07/05/2008, 18:11

Hi everyone, sorry if this has been asked before but couldn't find answer on search.  This will be my first declaration as professional micro enterprise for gites, (form 2042c) do I put my total revenue for last yr in the section marked 'vente de marchandises ou assimilees' box KO to get the 71/29 split or the service section ?? (I'm leaning towards KO as I understand the service section to be a lower percentage split circa 50/50)  Any advice greatly received, many thanks in advance

Jetlag

Re: Sorry, another tax question!!


Clair 07/05/2008, 18:31
As a non-professional, I enter the holiday rental income in OO (as I am a conjoint), which is described as "ventes de marchandises ou locations", equivalent to box KO for a professional.

You"ll be taxed on 29% of the figure you enter (71% will be deducted as expenses).
You also need to calculate the 29% and enter it in section F, box HY, to allow for the prélèvements sociaux on the income.

PS: I am not a specialist though...
Clair, a Real Virtual French Person

Re: Sorry, another tax question!!


jetlag 07/05/2008, 19:47

Hi Clair

Many thanks for your quick reply.  Pardon my ignorance, but what is prelevements sociaux?? No one has mentioned this before, not even the tax office........eeek!!!  I have started to pay professional cotisations for this yr and know I will need to pay tax professionel on the gites along with habitation tax for the house, is this yet another tax?? many thanks

Jetlag

Re: Sorry, another tax question!!


Clair 07/05/2008, 20:30
The French gvmt does not call it a tax, but that's what it amounts to.

They are payments towards the 'social fund shortfall' and normally amount to 11% of all earned and unearned income.
So in effect, you will receive a demand towards the end of the year for 11% of whatever the 29% of the rental income amount to, 11% of interest on savings (France and UK)...

If this is news to you, you should make an appointment with your tax office to get some assistance in completing the declaration.

Read these threads:
http://www.completefrance.com/cs/forums/1048354/ShowPost.aspx
http://www.completefrance.com/cs/forums/1054994/ShowPost.aspx

EDIT: as per my previous post, my rental income is on a non-professional basis. I am not familiar with professional taxes, so it would be best for you to seek help from the tax office.
They have a hotline (if your French is up to it): 0810 46 76 87 (8h - 22h Monday to Friday and 9h - 19h on Saturdays)
Clair, a Real Virtual French Person

Re: Sorry, another tax question!!


jetlag 07/05/2008, 20:41

Hi Clair

Thanks again for your quick reply, will contact the tax office on Friday.  So to put it bluntly, even though I already pay 45.5% of my 29% in cotisations,( registered as micro with chambre commerce etc) I will still need to pay a further 11%Confused [8-)] Seems very steep to me, but like you say, I will get onto them Friday!!!!  Will post what they say.  Thanks again

Jetlag

edit, sorry Clair, missed your edit at the bottom!! 

Re: Sorry, another tax question!!


Clair 07/05/2008, 20:48
 jetlag wrote:
I will get onto them Friday!!!!

Don't be surprised if they're closed this Friday.
There's a bank hol on Thurday and another one on Monday and in all probability, most gvmt offices will be closed until Tuesday...

Clair, a Real Virtual French Person

Re: Sorry, another tax question!!


Gastines 07/05/2008, 20:53

A visit to your local Impot office is the easy answer. We have found that you are dealt with quickly and given every help and you get immeadiate peace of mind.

Regards.

Re: Sorry, another tax question!!


Clair 07/05/2008, 20:55
Seconded! Smile [:)]

Clair, a Real Virtual French Person

Re: Sorry, another tax question!!


jetlag 09/05/2008, 17:10

I didn't get to the tax office but spoke to my French friend who was an accountant all her working life, and now I need to lie down and connect myself to the alcoholic drip while I get over the shockWoot! [:-))]  Seriously, thanks Clair for mentioning it earlier, I don't know why the Chambre of Commerce, the Impots or Ursaff don't tell you this info when you speak to them about setting up a business and declaring taxes!!  I wonder how many more 'surprise' taxes are waiting on the side linesCry Out [:'(] Thanks again

Jetlag

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