Every year, French residents who receive revenue from a self-employed activity must declare it to the tax office. This also applies to freelancers living abroad who receive revenue from France or who have a French tax household. How do you declare this revenue? What forms do you need to fill in as a self-employed person? This article explains what you need to know about form 2042-C-PRO: where to find it, what it is and how to fill it in correctly.

What's in this article?

• What is form 2042-C-PRO?
  
• Who needs a 2042-C-PRO form?
  
• When do you file a 2042-C-PRO form?
  
• How do you file a 2042-C-PRO form?
  
• How do you file a form 2042-C-PRO as a sole proprietor?
  
• What happens if you make a mistake?
  

What is form 2042-C-PRO?

Form 2042-C-PRO, in which "c" stands for "complémentaire" ("supplementary"), is an attachment to the tax return for self-employed people. It must be submitted with the tax return (i.e. form 2042). By following these links, you will find the forms for the 2022 tax year (those for 2023 are not available yet).

Who needs a 2042-C-PRO form?

Anyone working in a liberal profession or subject to the agricultural profits (BA), industrial and business profits (BIC) or non-business profits (BNC) regime must submit the C-PRO attachment with their tax return. The same applies to professionals who declare their revenue as freelancers (i.e. microenterprises or self-employed people).

Note: Professional and non-professional landlords of furnished rentals (LMPs and LMNPS respectively) pay tax under the BIC regime.

When do you file a 2042-C-PRO form?

Form 2042-C-PRO must be completed each year in May, together with form 2042. To complete your income tax return, you need to use information about your income from the previous year. Note that there is a deadline for filing your return, which depends on the area in which your business is located. Generally, the deadline is between the end of May and the beginning of June each year.

Also note that if you file your tax return late, your tax liability will increase by 10% if no formal notice is served; by 20% if the return is filed within 30 days of the formal notice being served; and by 40% after the 30-day period has passed. Interest of 0.20% of the unpaid tax amount will also be charged for each month of delay.

How do you file a 2042-C-PRO form?

If you have an internet connection, you should complete form 2042-C-PRO online in the private area of the Direction générale des Finances publiques website. Some fields will already have been filled in with information that you provided when completing other tax forms. Therefore, check that the information (change of family situation, personal information, address of domicile, etc.) is up to date and indicate the type (BA, BIC or BNC) and amount of your income covered by the 2042-C-PRO return. Make sure you check your whole return before signing and submitting it electronically.

If you do not have an internet connection, you will need to request a paper form from your tax office.

Note: Your tax office provides a guide to help you complete your tax return. You can find the 2022 form by exploring the link (the form for 2023 is not available yet).

How do you file a form 2042-C-PRO as a sole proprietor?

Like any freelancer, sole proprietors have to complete their form 2042-C-PRO in May. There are two scenarios:

• Return with the option of an income tax settlement payment: You have paid the tax because you have already declared it in your monthly or quarterly returns. In this case, you must indicate the amount of your annual revenue excluding tax, tick the box "versement libératoire" ("income tax settlement payment") and indicate the nature of your business.
  
• Return without the option of a settlement payment: In this case, you declare your tax when you complete form 2042-C-PRO. You need to indicate the amount of your annual revenue excluding tax and excluding any allowance. The allowance is calculated by the tax office according to the nature of your business: 34% of revenue for freelance activities, 50% of revenue for merchant services and 71% of revenue for sales of goods.
  

In both cases, it is key to check the content of your return before submitting it with your electronic signature.

What happens if you make a mistake?

You can amend form 2042-C-PRO if you have entered incorrect information: simply go to the private area on the website ("espace particulier des impôts") to access the online correction facility. You have several months to correct your 2042-C-PRO return.

To avoid errors, you can also use an automated feature such as Stripe Tax, which provides you with detailed reports of your transactions and revenue for the year. No code required. To learn how Stripe can simplify your tax procedures, contact one of our experts.