The income of the self-employed person who is affected by the withholding tax of the IR in the form of a deposit is:
- Industrial and commercial profits (BIC),
- Non-commercial profits (BNC),
There is the remuneration of managers and partners of companies covered by article 62 of the General Tax Code.
We remind you that dividends and interest on a partner’s current account are taxed differently. They bear a withholding tax on income also operated at source by the paying institution.
The amount of the IR deduction at source for the self-employed worker
The amount of withholding tax which the self-employed worker must pay is calculated on the basis of his last known activity income.
Following the communication, each year, of the income tax notice to the self-employed person, the tax administration specifies the amount of the income tax installments that will be made for the period from September to the month of August of the following year.
Example: During the summer of 2019, the self-employed person receives his income tax notice for 2018. The tax administration also informs him on this occasion of the amount of the down payments that will be taken for the period from September 2019 to August 2020.
For the implementation of the device:
- From January to August 2019: down payments are calculated on the basis of 2017 income declared in 2018,
- From September 2019 to August 2020: down payments are calculated on the basis of the 2018 income declared in 2019,
- From September 2020 to August 2021: down payments are calculated on the basis of the 2019 income declared in 2020,
For information, the administration communicates the amount of the income tax deposit that will be taken during the validation of the personal income statement on the website. The use of the tax return estimator comes useful there.
Finally, in the event of creation of an activity, the self-employed worker can:
- Either waits for the final settlement of income tax,
- Or pay a deposit the amount of which is calculated on the basis of the estimated profit.
Payment of IR withholding tax for the self-employed
The income tax deposit is automatically withdrawn by the tax authorities from the self-employed worker’s bank account, on a monthly or quarterly basis. Monthly installments are spread over 12 months.
Modulation of the amount of the IR withholding tax
The amount of the withholding tax can be adjusted by the self-employed person according to their income for the current year, in the event of a significant variation in income.
This allows, for example, a self-employed worker:
- To stop paying down payments when he ceases his professional activity,
- Increase the amount of down payments when their income increases,
- And, conversely, to decrease the amount of down payments when his income decreases.
The impots.gouv.fr site allows self-employed workers to simulate the possibility of modulation and to validate the request to the tax authorities.