Module 118 min2149 wordsFree — no account
Registering with the Tax Agency: the census declaration and its consequences
The module’s worked examples, then cases to attempt before revealing their solution · 2 sections · 272 words · 3 min
Worked example
A first invoice with withholding
Ana, a newly registered translator, invoices an agency 1,000 € for a job. She qualifies for the start-up rate, so the agency withholds 7 %, that is 70 €, and pays it to the Tax Agency. Ana receives 930 € plus the VAT on the invoice. The 70 € is not lost: it is an advance on her annual income tax.
Practical case
Ana's first quarter
Ana registered as a translator on 10 January and has never worked as a professional before. In the first quarter she invoices 6,000 € to agencies, which withhold at the start-up rate, and 2,000 € to private individuals, who do not withhold. Her deductible expenses for the quarter are 1,000 €. How much has been withheld, what percentage of her income was withheld, and does she owe a first-quarter instalment? If so, how much?
Hint: Compare the withheld income with the total income of the quarter, then compute 20 % of net income and subtract the withholdings.
Show the solution
Withholdings: 6,000 € × 7 % = 420 €. Share of income subject to withholding: 6,000 € out of 8,000 €, that is 75 %, at least 70 %, so in the start year she is not required to make the instalment for that quarter. Had she been required: net income 8,000 € − 1,000 € = 7,000 €, 20 % gives 1,400 €, minus 420 € withheld and minus the 100 € reduction of article 110.3 c), because her net income of the previous year (none) does not exceed 9,000 €: 880 €.
Answer: 420 € withheld, 75 % of income, no instalment due for the quarter
Educational content, current with the sources cited. It does not replace advice tailored to your situation. These courses are neither certifying nor CPF-eligible: they prepare for no certification registered with the French RNCP or specific register.