When will I pay tax on new micro-entreprise business?

I am setting up a micro-entreprise. When do I start paying PAS installments? 

There are two possible options for micro-entrepreneurs. The first is paying definitive income tax monthly or quarterly under the long-standing libératoire system using a set rate applied to actual turnover.

The other is having monthly or three-monthly ‘on-account’ instalments deducted from their bank accounts by direct debit under the PAS arrangements. 

These are based on the previous income declaration. In the latter case, if a micro-entrepreneur’s income varies considerably during the year it is possible to modify the PAS rate applied based on the new income level by clicking Actualiser suite à une hausse ou une baisse de vos revenus in your personal space at impots.gouv.fr.

In both cases people must still make an annual declaration to make sure that they have paid the correct overall tax after all incomes are accounted for.

If you are setting up a new micro-entreprise businesses this year and do not opt to use the libératoire method, you can choose under the at-source system to start paying tax instalments based on an estimate of what your 2026 earnings will be. 

You do this via Gérer mon prélèvement à la source and then Gérer vos acomptes in your personal space at impots.gouv.fr. 

If you do not do this, you will pay income tax for 2026 in the autumn of 2027. Setting up estimated payments before will avoid having to pay your due tax in one go.

The tax office will calculate the rate for installments from September 2027 based on your declaration in spring 2027.