How do you manage your Twitch revenues?

How can I make money on Twitch?

Twitch is now used by many French fans of online gaming. Gamers can earn money on this platform in a variety of ways. For example, you can become a streamer and broadcast video content on Twitch. This can include live video games, tutorials, broadcasts, commentaries and more.

To earn good money with streaming, however, you need a good audience for your channel, and you need to respect certain rules.

You need the right equipment to deliver quality video content to your viewers. Streaming on Twitch is very interesting, as you can play online and organize live sessions to chat with other players. Twitch streamers can be either affiliates or partners.

Donations are another way to earn money on this platform. When their video content is interesting, streamers can receive donations from users. Viewers of live events can also donate bits (Twitch's virtual currency).

Players also earn money via :

• advertising,
• the sale of merchandising products,
• sponsorship.

Streamers also earn income from subscriptions to their channels. Those with millions of viewers often have high earnings and a good ranking on the platform. You can also share your streams on other social networks such as YouTube, Instagram and TikTok to boost your earnings. Broadcasting the video of your live stream can be interesting for your subscribers who weren't able to see you stream live. You also have the option of giving access to the replay of your live stream only to your Twitch subscribers.

How do you manage Twitch revenues?

Income earned on Twitch is paid directly into players' bank accounts. In France, to withdraw and use this money, you must declare it, as it is taxable.

French streamers have several options for declaring their Twitch earnings. They can declare their earnings as entrepreneurs or micro-entrepreneurs. They can also declare all income as non-commercial profits (BNC).

Entrepreneur and auto-entrepreneur: how to declare Twitch revenues?

Streamers can associate their Twitch remuneration with a professional activity. The type of declaration depends on your status. If you're an entrepreneur, you're subject to the "régime réel", or controlled declaration system. With this status, your Twitch earnings are declared as wages according to the income tax scale.

This deduction is made after the tax base has benefited from a 34% allowance. In return, however, social security contributions are much higher. If the French gamer is a micro-entrepreneur, the tax rate is 27.3% of sales.

Declare your Twitch revenues as non-commercial profits

Many French gamers don't have their own business and don't associate their earnings with a professional activity. They often stream video games because they're passionate about them. To manage their income from the platform, these streamers must declare it as non-commercial profits (BNC). In this case, the tax authorities add up all categorical earnings to determine the tax base. The tax rate is then set according to the income bracket.

You mayor may not be able to claim a 34% tax deduction on Twitch earnings. This reduction in the tax base is generally applied when income earned during the year is less than €70,000. The deduction is not applied when earnings exceed this amount. You could therefore find yourself with a very high tax base.

What legal status should you choose to manage your Twitch revenues?

In France, streamers have three options for managing their Twitch revenues. Some options are more advantageous than others. If your income does not exceed 70,000 euros, you can register as a micro-entrepreneur. The formalities involved in setting up this type of business are simplified.

With micro-entrepreneur status, accounting, tax and reporting obligations are also lightened. Streamers will thus have flexible tax rates. As an auto-entrepreneur, streamers can also opt to pay withholding tax. This tax system offers a number of advantages, but also requires certain calculations. To make this type of payment, the auto-entrepreneur must also meet certain conditions.

Entrepreneurial streamers are subject to a real tax regime. If you decide to manage your Twitch income with this legal status, you must be prepared to be taxed on a flat-rate basis. What's more, accounting declarations are highly controlled. So you'll need a professional accountant to help you keep the books. Setting up a company under this regime also requires a substantial budget.

When the streamer is an entrepreneur, the tax rate on Twitch income is higher than for a micro-entrepreneur. These tips on managing Twitch income also apply to other platforms such as YouTube. As a streamer, do you also want to have a YouTube channel to optimize your earnings? Find out on our site how to become a Youtuber and have a channel with a large number of subscribers. With all this income from streaming sessions and video sharing, you'll be able to earn a decent salary.

However, life on Twitch is no Eldorado. You'll need many hours of work and a large community of paying subscribers to become the platform's new Zerator or Squeezie.