Naturally, employees are among those eligible for the "prime d'activité", but that's not all! Did you know that micro-entrepreneurs are also eligible? Conditions apply.
Let's find out everything you need to know to benefit from the activity bonus as a micro-entrepreneur.
The prime d'activité was created in 2016 to replace the prime pour l'emploi and the RSA activité. Its aim is toprovide modest workers with additional income to support their monthly consumption.
In 2019, 5 million households were eligible for this bonus.
It applies to all workers earning between €285 and €1,806 net per month.
Tax-exempt and cumulable with the RSA, it is paid on the 5th of each month, and can amount to over €500.
To qualify for the activity bonus as a micro-entrepreneur, several conditions must be met:
- Be of age
- Active micro-entrepreneurial activity
- Earn less than €1,806 net per month
- Live in France for at least 9 full months each year
- Be a French national, a citizen of the European Economic Area or Switzerland or, failing that, have lived legally in France for at least 5 years.
Naturally, you need to meet the eligibility criteria for micro-entrepreneur status, i.e. you must not exceed the legal sales ceiling These are: €176,200 per year for commercial and accommodation activities; €72,600 per year for services and liberal professions.
Since the passing of the "Rebsamen Law", student student micro-entrepreneurs can also benefit from the activity bonus. To be eligible, the person must have a dependent child or professional income of less than 78% of the monthly net SMIC (i.e. €932.29).
To apply, you need to visit the CAF (Caisse d'Allocations Familiales) website. The procedure is entirely online, and must be completed using the following elements:
- Your Social Security number
- Your tax notice
- A summary of the total income received by all persons living in your household over the past 3 months
- Your bank details
Once your situation has been examined, you will receive a reply from the CAF informing you of your eligibility.
Its allocation is re-evaluated each quarter according to changes in your income.
The calculation of the "prime d'activité" depends on your household's resources, and the fixed amount determined by the French government. The calculation formula is as follows
Prime d'activité = (flat-rate amount + 61% of professional income + individual bonuses) - household income taken into account
The basic flat-rate amount is €551.51 for a single person with no dependent children. The activity bonus is a benefit available to micro-entrepreneurs. It is not the only one: ACCRE, ARCE or NACRE are just some of the public assistance available to you.
So there's a simple way to reduce your costs and improve your income: company domiciliation. Using the services of a domiciliation company allows you to dissociate the address of your head office from your actual place of work.
You can take advantage of a wide range of prestigious addresses, and a wide range of services to lighten your daily routine (switchboard, administrative and legal assistance, mail management, meeting room rental, etc.) for as little as a few dozen euros a month!
Finally, it's possible to target a municipality with a low CFE tax rate to easily reduce your tax burden. This is the ideal alternative to domiciling your company in your personal residence, or in commercial premises.
Written by our expert Paul LASBARRERES-CANDAU
December 8, 2020
