Renting vehicles between private individuals via the Ouicar platform generates income that must be declared to the tax authorities. This booming business raises a number of tax issues for owners. Our specialized firm can help you understand your obligations.

What is Ouicar and what are the tax implications?

Ouicar is a private car rental platform that enables vehicle owners to generate additional income. From a tax point of view, this income qualifies as industrial and commercial profit (BIC), rather than property income.

The tax authorities consider this activity to be commercial from the first euro received. You must therefore declare all sums received, even for occasional rentals.

Tax system applicable to Ouicar income

Two tax systems apply, depending on your annual income:

The micro-BIC scheme applies if your income does not exceed 77,700 euros a year for rental services. The tax authorities automatically apply a flat-rate deduction of 50% to take account of expenses. Only 50% of your income is therefore taxable.

The actual system becomes compulsory above this threshold, or can be chosen as an option even below the €77,700 threshold. This allows you to deduct your actual expenses: fuel, insurance, maintenance and vehicle depreciation. This option is binding for a minimum of two years, but you can revert to the micro-BIC system after this period, subject to the waiver period.

Declaration of car rental income

You must report your Ouicar income on the 2042-C-PRO tax return, making a careful distinction between “professional” and “non-professional” industrial and commercial income. This distinction depends on precise criteria: your BIC income is considered professional if it exceeds 23% of your total income or 12,030 euros per year. Below these thresholds, they fall under the non-professional regime.

For the micro-BIC scheme, enter the gross amount received. The 50% deduction will be applied automatically. Under the “régime réel”, you'll need to keep detailed accounts and complete a tax return. Professional or non-professional status also has an impact on your social security contributions: professional BIC is subject to social security contributions for self-employed workers, while non-professional BIC is exempt.

The Ouicar platform provides you with an annual summary of your income, making it easier for you to file your tax return. Keep all expense receipts to optimize your tax situation, and be sure to assess your situation with regard to professional qualification thresholds, as this distinction has a significant influence on your overall tax and social security burden.

Tax optimization and possible deductions

Under the real-estate system, several expenses are deductible from your Ouicar income. Vehicle depreciation is often the most important deduction, calculated on the basis of acquisition value and useful life.

Deductible expenses include: insurance, fuel, repairs, roadworthiness tests, parking and tolls for vehicle handovers. The transport sector benefits from specific rules that need to be mastered.

Rigorous accounting allows you to optimize your tax burden while complying with regulations. Keep detailed records of all your business expenses.

Practical tips for optimal tax management

Anticipate your obligations by opening a bank account dedicated to your Ouicar business. This separation makes it easier to keep track of your accounts and justify your income and expenses.

If your expenses represent more than 50% of your income, you should consider switching to the actual tax system on a regular basis. This option may be more advantageous than the flat-rate deduction.

In the event of a tax audit, keeping accurate accounts and all supporting documents are your best protection. Don't hesitate to consult a tax expert to optimize your situation and avoid costly mistakes.

Social security contributions and URSSAF charges

In addition to tax obligations, vehicle rental via Ouicar can also entail social obligations when the activity takes on a professional character. The French tax authorities assess this status on the basis of several criteria: frequency of rentals, number of vehicles offered and amount of revenue generated.

If your activity qualifies as professional, you will have to pay social security contributions to URSSAF. These contributions finance your social protection (health, retirement, family allowances) and are calculated on the basis of your taxable profit.

There are two important thresholds to be aware of:
- Below €23,000 in annual revenue: you will generally remain in the self-employed sector
- Above this threshold: you will have to join the self-employed workers' scheme and pay the appropriate contributions.

Social security contributions represent around 45% of net profit for a conventional self-employed worker. However, new entrepreneurs can benefit from the ACRE (Aide aux Créateurs et Repreneurs d'Entreprise) scheme, which offers partial exemption from social security contributions for the first year of business.

To optimize your situation, consider setting up a micro-business if your activity remains moderate, or a company if you're expanding. Each status offers specific advantages in terms of social charges and protection of personal assets.