Everything You Need to Know About the BNC and Micro-BNC Regimes

Micro-BNC is the simplified tax regime for self-employed people carrying on a non-commercial activity (consultants, liberal professions, artist-authors). In 2026, it applies as long as your annual receipts excluding VAT stay below a specific ceiling, uprated every year. You pay tax on a profit calculated by applying a flat-rate allowance, without keeping detailed accounts. In this guide we set out the thresholds in force, how the tax is calculated, social security contributions, VAT and the obligations you must meet to stay compliant.

What is micro-BNC and who does it apply to?

Micro-BNC is one of the two tax regimes for non-commercial profits (BNC), alongside the controlled return (déclaration contrôlée). It is aimed at self-employed workers who earn income from a non-commercial activity and whose annual receipts stay below the legal ceiling. The principle: you declare your receipts, the tax authorities apply a flat-rate allowance for expenses, and you are taxed on the resulting profit. No accrual accounting, no complex balance sheet.

BNC: which activities are we talking about?

BNC covers income from non-commercial activities. In practice, this means:

• regulated liberal professions (lawyers, doctors, architects, chartered accountants) and unregulated ones (consultants, coaches, trainers);

• artist-authors (writers, composers, visual artists, photographers);

• providers of intellectual services (graphic designers, translators, freelance developers);

• income from notarial offices and holders of non-commercial public offices.

If you invoice intellectual services, advice, creative work or personal know-how, without buying and reselling goods, your income in principle falls under BNC. The micro-BNC regime then applies if your receipts do not exceed the threshold set by law.

Micro-BNC vs the controlled return: the difference in one sentence

Under micro-BNC, the tax authorities apply a flat-rate allowance (34%) to your receipts and you do not have to justify your actual expenses. Under the controlled return (“real BNC”), you deduct your actual expenses (rent, equipment, contributions, subcontracting) from your receipts: you are taxed on your actual profit, but you must keep full accrual accounts and file a set of tax returns. Micro-BNC is simpler; the controlled return is more precise and often more advantageous when your actual expenses exceed the flat-rate allowance.

What is the micro-BNC receipts ceiling in 2026?

Micro-BNC is subject to an annual ceiling on receipts excluding VAT. This threshold is uprated every year and should be checked against official sources when you file your return. The information below reflects the thresholds identified in the institutional sources consulted in 2026: always check the current amount on service-public.fr or the BOFiP before filing any return, because a threshold error means leaving the regime.

The threshold not to exceed

For non-commercial activities under micro-BNC, the annual receipts ceiling excluding VAT is set at €77,700 for 2025 and uprated for 2026 (other sources quote €83,600 excluding VAT for 2026, an amount to be confirmed against the official source). This threshold applies to the full calendar year. You must count all your receipts (fees, commissions, royalties) and check that the total excluding VAT stays below the ceiling.

What happens if you exceed it?

The law provides for a tolerance known as the “two-year overrun rule”:

• if you exceed the threshold in a single year, you remain under micro-BNC. You are asked to regularise, and you only switch to the controlled return regime if the overrun is confirmed the following year;

• if you exceed the threshold for two consecutive years, you automatically leave micro-BNC on 1 January of the following year. You switch to the controlled return and must keep accrual accounts from that date.

The VAT exemption threshold scheme (see below) follows a similar logic, with its own thresholds.

Special case: starting your activity during the year

When you start your activity during the calendar year, the micro-BNC receipts ceiling applies pro rata temporis. In practice, if the annual threshold is €77,700 and you start on 1 July, the ceiling for that first year is halved (€38,850). The following year, the full threshold applies over the whole calendar year. The same rule applies to the VAT exemption threshold scheme.

How is tax calculated under micro-BNC?

Micro-BNC is based on a simple logic: the tax authorities do not ask you to itemise your expenses. They apply a flat-rate allowance representing your business expenses, and you are taxed on the result.

The 34% flat-rate allowance

Under micro-BNC, the flat-rate allowance is 34% of your receipts. Your taxable profit is therefore equal to 66% of your receipts. This allowance covers all your actual expenses (running costs, equipment, rent, travel, social security contributions). If the allowance does not cover your actual expenses, that is a sign that the controlled return regime could be more advantageous (see the dedicated section).

Applying the progressive income tax scale

By default, your taxable profit (receipts minus the 34% allowance) is added to your household's other income. You are then subject to the progressive income tax (IR) scale. The applicable rate depends on your marginal tax bracket and your total income. You declare this profit on the dedicated line of form 2042 C PRO, in the section for professional non-commercial income.

The flat-rate income tax payment (VFL): an alternative to the scale

The flat-rate income tax payment (versement forfaitaire libératoire, VFL) is an option that lets you pay tax on your profit at a fixed rate, instead of the progressive scale. You pay the tax at the same time as your social security contributions, monthly or quarterly, calculated on your turnover. With the VFL, this profit is not added to your other income for income tax purposes. It is worthwhile if you are in a high tax bracket; less so if you are not taxable or only lightly taxed, because you pay the tax even if your overall income remains low. The option must be taken no later than 1 October of the year before the one in which it applies.

Worked example (illustrative case)

Take a generic, illustrative example (not a real client case). A self-employed consultant has receipts of €50,000 excluding VAT in 2026:

• flat-rate allowance: €50,000 × 34% = €17,000;

• taxable profit: €50,000 − €17,000 = €33,000 ;

• the household is taxed on this amount under the progressive income tax scale, or on the basis of this profit via the VFL if that option was chosen.

This example shows how the calculation works. The amount of tax depends on your tax bracket, your family situation and the household's other income.

Which social security contributions apply under micro-BNC?

Social security contributions do not follow the same logic as income tax. They are calculated on your turnover, not your profit. There are two possible regimes: the simplified micro-social regime (standard) or the VFL option combined with micro-social.

The simplified micro-social regime

Under the simplified micro-social regime, your social security contributions are calculated on your turnover at a single flat rate. The rate varies according to your activity and status (liberal profession, artist-author, micro-entrepreneur). You pay contributions even if your activity does not generate a profit. This system avoids year-end adjustments: the rate is known in advance and you pay according to what you receive. The micro-social regime applies automatically if you are registered as a micro-entrepreneur; it also applies to artist-authors with specific rates and rules.

CIPAV vs SSI: which body depending on your activity

The body that handles your social cover depends on your activity:

• CIPAV (the inter-professional pension and provident fund) for unregulated liberal professions: consultants, coaches, trainers, providers of intellectual services, and most self-employed people not classified in a commercial, craft or regulated liberal activity;

• SSI (the social security scheme for the self-employed), attached to the national health insurance system, for regulated liberal professions that do not belong to a specific fund and for mixed activities.

If you are starting a non-commercial activity, CIPAV is the most common body. Check your affiliation as soon as you register on the INPI one-stop shop, because an affiliation error complicates your procedures later on.

Micro-BNC and VAT: does it apply to you?

VAT is a separate matter from the income tax calculation. Under micro-BNC, you in principle fall under the VAT exemption threshold scheme, which means you do not charge VAT or pay it over. This simplified scheme has its own threshold.

The VAT exemption threshold scheme

The VAT exemption threshold scheme applies as long as your annual receipts excluding VAT stay below the threshold for non-commercial services (€77,700 in 2025, uprated for 2026 according to the official scales). As long as you are below this threshold, you:

• do not charge VAT to your customers;

• cannot recover VAT on your business purchases;

• must include the statement “TVA non applicable, art. 293 B du CGI” (VAT not applicable) on your invoices.

The VAT exemption is automatic under micro-BNC. However, you can waive it and opt for VAT if that is worthwhile (for example, to recover VAT on major investments). The option must be notified to your SIE (business tax office).

Exceeding the VAT threshold: consequences

If your receipts exceed the VAT exemption threshold for two consecutive years, you lose the exemption on 1 January of the following year. You must then charge VAT to your customers, pay over the output VAT and recover the input VAT, through periodic VAT returns (monthly, quarterly or annual depending on your regime). Moving to real VAT comes with heavier filing obligations.

What accounting and administrative obligations apply?

Micro-BNC does not exempt you from all obligations. You remain subject to simplified but real accounting and administrative rules. Here is what you need to keep up to date.

The receipts book

You must keep a chronological receipts book : a register in which you record, in order, every payment received (date, customer, amount excluding and including VAT, payment method). This book is the basis of your simplified accounts and allows the tax authorities to check your income in the event of an audit. A parallel purchases register is also recommended, even though it is not mandatory in the same way as the receipts book.

Mandatory invoicing and legal particulars

You must issue an invoice for every service, even if you do not charge VAT. The invoice must include specific legal particulars:

• your full identity (name, address, SIRET);

• the invoice date and a unique sequential number;

• the customer's identity;

• a description of the services, their quantity and their unit price excluding VAT;

• the total amount excluding and including VAT, and the statement “TVA non applicable, art. 293 B du CGI” if you are under the exemption scheme.

An incomplete or missing invoice is penalised. If you invoice abroad, additional rules apply (intra-EU VAT number, reverse charge).

Dedicated bank account: mandatory or not depending on your status

Whether you need a dedicated bank account depends on your legal status:

• Micro-entrepreneur (auto-entrepreneur): a dedicated bank account has been mandatory since 2015, but it does not have to be a business account. An account separate from your personal accounts is enough;

• Sole proprietorship under micro-BNC (other than a micro-enterprise): the law does not require a dedicated account, but a separate account makes tracking easier and helps provide evidence in an audit;

• Company (SASU, EURL) : a business bank account in the company's name is mandatory from registration.

Separating business and personal flows is good practice, whatever your legal form.

Periodic returns (simplified form no. 2042 C PRO)

Every year, you declare your receipts on form 2042 C PRO, in the “professional non-commercial income” section. You enter the total amount of your receipts excluding VAT, and the tax authorities apply the flat-rate allowance automatically. If you have opted for the VFL, you also declare your monthly or quarterly turnover through your URSSAF or CIPAV return, depending on your fund. The annual return remains mandatory for declaring your overall income.

Should you choose micro-BNC or the controlled return?

This is the question that changes everything. Micro-BNC is simple, but it has a structural flaw: you never see your real margin. The 34% allowance is a flat rate; it does not reflect your actual expenses. If your actual costs are high (software, rent, subcontracting, travel), the controlled return lets you deduct the exact amount and reduce your taxable profit, sometimes significantly.

Decision criteria

Here are the criteria to consider when deciding:

Criterion — Micro-BNC — Controlled return

Receipts ceiling excl. VAT — €77,700 (2025), uprated in 2026 — No ceiling

Allowance / expenses — Flat rate (34%) — Actual expenses deductible

Accounting — Simplified (receipts book) — Accrual accounting, tax returns

Chartered accountant — Not mandatory — Recommended, almost essential

Main benefit — Simplicity, visibility of cost — Tax optimisation, view of the margin

Switching point — 34% allowance = actual expenses of 34% — Actual expenses > 34% = advantage

The rule of thumb is simple: if your actual expenses are below 34% of your receipts, micro-BNC means you pay less tax. If your actual expenses are above 34%, the controlled return becomes more advantageous.

Why real-time bookkeeping changes the game

Under micro-BNC, you cannot see your margin. You know how much you receive, but not how much your business really costs you. Under the controlled return, with real-time bookkeeping through a tool such as Pennylane, you can see your cash position, your expenses by category and your forecast profit at any time. You run your business instead of finding out at year-end. That is the main advantage of switching to the real regime: making decisions with up-to-date figures, rather than waiting for the year-end adjustment. For BIC, you will find the same kind of comparison on our page real regime or micro-BIC.

For a broader overview of the tax regimes available to the self-employed, see our guide to tax regimes.

When and how do you leave micro-BNC?

You can leave micro-BNC in two ways: automatically, if you exceed the threshold, or voluntarily, if you opt for the controlled return.

Automatic exit (threshold exceeded)

As explained above, exceeding the receipts ceiling for two consecutive years means you automatically leave micro-BNC on 1 January of the following year. You switch to the controlled return, with its accounting obligations. The VAT exemption threshold follows a similar logic: you become liable for VAT and must charge it.

Voluntary exit (opting for the controlled return)

You can voluntarily opt for the controlled return at any time. The option must be exercised no later than 1 October of the year before the one in which it applies. Once exercised, the option is valid for two years and is renewed automatically. A voluntary exit makes sense if your actual expenses exceed the flat-rate allowance, or if you are planning major investments that would eat into your margin under micro-BNC.

Frequently asked questions

What is the micro-BNC turnover ceiling in 2026?

The annual receipts ceiling excluding VAT for staying under micro-BNC is €77,700 in 2025, uprated for 2026 (the sources consulted mention €83,600 excluding VAT for 2026). Check the current amount on service-public.fr or the BOFiP before filing your return.

What is the difference between micro-BNC and micro-BIC?

Micro-BNC covers non-commercial activities (consulting, creative work, liberal professions). Micro-BIC covers commercial, industrial or craft activities (trade, crafts, provision of accommodation). The two regimes have different thresholds and allowances (34% for micro-BNC; 71%, 50% or 34% depending on the nature of the activity for micro-BIC).

What is the micro-BNC allowance rate?

The flat-rate allowance under micro-BNC is 34% of your receipts. Your taxable profit represents 66% of your receipts. This allowance covers all your business expenses.

Can you be under micro-BNC and charge VAT?

By default, no: micro-BNC comes under the VAT exemption threshold scheme, which relieves you from charging and paying over VAT. However, you can waive it and opt for real VAT if you want to recover VAT on your purchases (investments, equipment). The option is notified to your SIE.

Do you need a chartered accountant under micro-BNC?

Using a chartered accountant is not mandatory under micro-BNC. It becomes useful when you are considering switching to the controlled return, to compare the two regimes on the basis of your actual expenses and prepare your profit forecast. A chartered accountant also secures your VAT returns and tax returns if you leave the micro regime.

When do you switch from micro-BNC to the controlled return?

The switch is automatic if your receipts exceed the ceiling for two consecutive years. It takes effect on 1 January of the following year. You can also choose to switch voluntarily by opting for the controlled return before 1 October of the previous year.

Is the flat-rate income tax payment worthwhile under micro-BNC?

The VFL is worthwhile if you are in a high tax bracket: you pay tax at a fixed rate, calculated on your turnover, and the profit is not added to your other income. It is less so if you are not taxable or only lightly taxed, because you pay the tax even if your overall income remains low. The option must be exercised before 1 October of the previous year.

Do you need a dedicated bank account under micro-BNC?

Yes for micro-entrepreneurs (a dedicated account has been mandatory since 2015). No for standard sole proprietorships under micro-BNC, where the law imposes no obligation. A separate account is nevertheless recommended to make tracking easier and to provide evidence in an audit.

How GME Audit supports you

GME Audit is a Paris-based accounting and audit firm led by Steeve Elharrar, chartered accountant and statutory auditor, formerly with KPMG and Deloitte. We support self-employed people and liberal professions in choosing their tax regime and keeping their accounts, throughout France, in French and English.

If you are torn between micro-BNC and the controlled return, we prepare a profit forecast based on your actual expenses so you can decide with figures. You see your cash, margins and deadlines in real time through Pennylane, without waiting for the annual accounts. To work with a chartered accountant for your freelance business, request a quote: we will reply with a precise answer, not a template quote.

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Sources

• service-public.fr: BNC and micro-BNC

• impots.gouv.fr: Non-commercial profits

• BOFiP: BNC, micro-BNC

• URSSAF: Social security contributions for the self-employed

• CIPAV: Pension fund for the liberal professions

Published by GME Audit, a chartered accountancy and statutory audit firm led by Steeve Elharrar, chartered accountant and statutory auditor, formerly with KPMG and Deloitte. Firm registered with the Ordre des Experts-Comptables, support in French and English, throughout France. This content is provided for information only and does not replace personalised advice. The tax thresholds mentioned reflect the scales known at the time of writing and should be checked against official sources before filing any return.