03/06/2024
The question that inspired this post:
Hello all! Thanks for having me in the group.
I'm a new permanent resident in France and am going to be setting up as a freelance editor. But my question is:
Does anyone here self-publish books while living in France? If so, how are "royalties" paid by Amazon etc taxed? Do I need to register my pen name as a "business" or will that be the same as when I sign up as a freelance editor?
Thanks!
Answer
You will register as a micro-entrepreneur or another regime. You will get a siret number. You will only have 1 siret number but you can register several different activities under one number. You can register a trading name if you want but keep things simple in my opinion.
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Introduction
Hello and welcome to the group! If you're a freelancer in France looking to self-publish your books and handle the associated royalties, this guide is for you. Below, you'll find key points regarding self-publishing, managing royalties, and understanding the tax implications while living in France.
Self-Publishing and Handling Royalties in France
Self-Publishing Platforms
Self-publishing through platforms like Amazon KDP, Kobo Writing Life, and others while residing in France is entirely feasible. Many authors successfully use these platforms to reach a global audience.
Royalties as Self-Employment Income
Royalties earned from book sales on these platforms are considered self-employment income, known as "revenus non commerciaux" in France.
Reporting Income: You can report your book royalties as part of your overall self-employment income when filing taxes in France.
Business Registration: While you don’t necessarily need to register your pen name as a formal business entity, some authors opt to set up a micro-enterprise or auto-entrepreneur status specifically for their writing activities to separate it from other freelance work. This is optional but can help with accounting.
Taxation of Royalties
All royalty income earned through self-publishing platforms will be taxable in France. Here’s what you need to know:
Income Tax: Royalties are considered part of your income and are subject to French income tax.
Social Contributions: In addition to income tax, you will need to pay social contributions (cotisations sociales) on your royalties.
Self-Declaration: Platforms like Amazon will not automatically deduct French taxes from your royalties. You are responsible for declaring and paying taxes owed on this income.
Double Taxation Agreements
France has double taxation treaties with many countries, including the United States, where Amazon is based. These treaties help prevent double taxation on the same income. Check the specifics of the treaty between France and the country from which you are receiving royalties.
Setting Up as a Freelance Editor
Registering as a Micro-Entrepreneur
You can register as a micro-entrepreneur (auto-entrepreneur) in France, which is a simplified regime for freelancers. This registration allows you to handle both your freelance editing and self-publishing activities under one business entity.
Using a Pen Name
You do not need to register your pen name as a separate business. Your pen name can be considered a pseudonym, which you use for your writing activities. The business registration will be under your legal name, but you can operate and publish books using your pen name.
Steps to Register as a Micro-Entrepreneur
Online Registration: Register online at the URSSAF Auto-Entrepreneur Portal.
Choose Activity Codes (NAF/APE codes): For freelance editing, use codes related to publishing or professional services.
Obtain SIRET Number: Once registered, you will receive a SIRET number, which is your business identification number in France.
Tax Reporting
Reporting Income
Annual Income Tax Return: Report your royalties and freelance income in your annual income tax return.
Quarterly or Monthly Declarations: As a micro-entrepreneur, you will also need to make quarterly or monthly declarations of your income for social contributions.
Keeping Records
Maintain detailed records of all income received from royalties and freelance work. This includes invoices, receipts, and any documents from platforms like Amazon.
Professional Assistance
Consider consulting with an accountant or a tax advisor who specializes in working with freelancers and authors. They can provide tailored advice and ensure you comply with all tax regulations.
Useful Links and Resources
Auto-Entrepreneur Registration: URSSAF Auto-Entrepreneur Portal
French Tax Authority: Impots.gouv.fr
Social Contributions Information: URSSAF
Guide for Authors: Society of Authors (France)
Conclusion
By registering as a micro-entrepreneur, you can streamline your business operations and ensure you are compliant with French tax laws.
Reporting your royalties as part of your self-employment income, maintaining thorough records, and seeking professional advice will help you manage your self-publishing and freelance editing career effectively in France.
Feel free to ask any further questions or for more specific advice!
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