A significant number of Youtubers and / or web application developers do not submit any tax return in France so that they take a real tax risk as on the one hand, these sums are taxable to the income tax and that on the other hand, tax audit of this type of income tends to become general.
As such, French tax law is very clear on the matter, as a French tax resident:
- Taxpayer must declare the income earned via Youtube and other web platforms;
- More generally taxpayer must declare income earned on the internet;
What about the tax regime applicable to such income? Broadly speaking, income received by a Youtuber and / or a web application developer have to be declared in the category of BNC (Non-commercial profits). Keep in mind that different sub-regimes exist within the BNC regime. Indeed, this is the amount of income received which determine the best tax regime applicable, it being specified that the amount of income collected for the fiscal year is not the only criteria to determine the most favorable tax regime.
Lastly, it is important to consider which status is applicable to such activity:
- Self-employed status so called “Auto-entrepreneur” (no VAT but RSI contribution and taxation at the level of 25% of the turnover).
- Beyond 32,900 euros turnover, individual will have to opt for another status, such as a one-person company with limited liability (EURL) or a Single-person simplified joint stock company (SASU).
In certain case, International tax aspect must be considered. A review of the International tax treaty between France and the other country involved will be necessary.