A major simplification has been introduced for the self-employed in 2021: the merger of tax and social security returns. From now on, these players will draw up just one tax return to calculate their personal social security contributions and income tax. Here are the details.
A single declaration on the tax site
Until now, self-employed workers have had to fill out three separate, redundant declarations each year:
- Income tax return: this document must be filed each year by professionals subject to income tax in the BNC (non-commercial profits), BIC (industrial and commercial profits) or BA (agricultural profits) categories. The amount of profit earned is determined by means of the tax return, the income statement and other attached statements.
- The income tax return: self-employed professionals must declare their sales or revenue without deducting any expenses.
- The social declaration for the self-employed (DSI): this is used to calculate all compulsory social contributions, as well as CSG and CRDS.
From January 1, 2021, the famous DSI, which was carried out on the net.entreprises.fr website, will be abolished in favor of a single declaration. In concrete terms, workers will complete their usual tax return on the impôts.gouv.fr website, then access their income tax return, which will be associated with a "specific social component". Once the declaration has been made, the information needed to calculate personal social security contributions will be transmitted automatically to URSSAF or CGSS, so that it can readjust provisional contribution schedules and regularize final contributions.
Who is affected by this new measure?
These new procedures apply to players in the craft, commercial, industrial or liberal professions who are affiliated to the general scheme for self-employed workers.
Persons covered by the following schemes are excluded:
- Agricultural Social Security (MSA)
- Approved medical practitioners and auxiliaries (PAM-C)
- Artists-authors (MDA/AGESSA)
- Fishermen and merchant seamen.
Auto-entrepreneurs are not affected, and continue to calculate their social security contributions and declare their sales and income to URSSAF or CGSS.
In a press release published on February 3, 2021, URSSAF and Finances Publiques specify that the users concerned will be informed at the end of March, by email, of their new declaratory procedures and the opening date of the online service.
In all, almost 1.4 million craftsmen, shopkeepers and self-employed professionals should benefit from the merger of their social security and tax declarations in 2021. Another 600,000 farmers will be added in 2022, followed by 400,000 medical and paramedical professionals in 2023.