Professional Expense Deduction: Who Qualifies and What You Get
Learn how the Professional Expense Deduction works for auto-entrepreneurs to help you understand your taxable income.
This scheme provides a simplified way for certain self-employed individuals to account for their business costs when calculating their taxes.
Who it's for
This is designed for auto-entrepreneurs who operate under the micro-BNC regime.
What you get
You receive a flat-rate deduction for your professional expenses. This means instead of tracking every small receipt, a set percentage is subtracted from your gross income to determine your taxable amount.
What it costs you
There is no direct monetary fee to use this method. Instead, the cost is the application of an automatic deduction of 34% from your gross income for tax purposes.
The catch to know
Because this is a flat-rate deduction, you cannot claim your actual business expenses if they happen to be higher than the 34% rate. You must choose this simplified method even if your real costs are greater.
How to apply
- Confirm you are registered under the micro-BNC regime.
- Calculate your total gross income for the year.
- Apply the automatic deduction when filing your tax declarations.