What data is taken into account in the calculation of the self-employed tax?

Whether you are already a self-employed person or considering becoming one, you must know the data taken into account when calculating tax. A better understanding of your taxes will help you better manage your finances. This article then lifts a corner of the veil on the main elements considered to determine the self-employed tax.

Key data in calculating self-employed tax

Accountant Calculating Tax At Desk

The data taken into account in the calculation of the self-employed tax are three in number, namely: the annual gross income, the reduction rate, and the number of tax shares.

Annual gross income

Annual gross income refers to the total amount of revenue you generated during the year. To then determine it, the tax services take into account all sales, services provided, and any other income from professional activity. This is therefore the starting point of calculation of self-employed tax.

The reduction rate

The deduction rate has a direct impact on the amount of their tax. Expressed as a percentage, it is applied to the annual gross income to determine the tax base. Thus, the reduction rate varies depending on the nature of the self-employed person’s activity. In addition, remember that there are two reduction rates: one for commercial activities, and another for the provision of services.

The number of tax shares

The number of tax shares constitutes the third factor taken into account when calculating the self-employed tax. It is essentially based on the family situation of the self-employed person (single, in a relationship, with or without children). The calculation rule is this: the more tax shares you have, the less tax you will pay.

How to optimize your taxation to pay less taxes?

Please note that it is entirely possible to optimize your taxation to significantly reduce your tax burden. Everything happens from the creation of your microenterprise. In fact, at this time, you will have the choice between two tax regimes: the microenterprise regime and the real regime. Let's see how each one works.

The microenterprise

The microenterprise regime is the option favored by many self-employed people, due to its simplicity. Indeed, under this regime, your tax is calculated on the basis of your turnover, with the application of a flat rate reduction. This regime is clearly advantageous if your activity generates relatively low turnover.

In this case, you will pay less taxes. Note that the tax can be collected monthly or quarterly. The only constraint with this tax regime is to anticipate your turnover in order to prevent the risk of a tax rate that is too high.

The real regime

The real regime, on the other hand, is more complex, but nevertheless offers micro-entrepreneurs greater flexibility. Indeed, with this plan, you will declare your real income by directly subtracting your professional expenses from your turnover.

This means that if you have significant expenses, you can deduct these expenses from your income, consequently reducing your tax base. We then recommend the real regime if you consider yourself to bear significant costs.