A simplified status that alleviates the constraints encountered with other legal forms available in France, micro-entrepreneur (auto-entrepreneur) status is a form of sole proprietorship that subjects you to certain taxes. Are you running a business as a micro-entrepreneur, and wondering whether you are subject to the CFE (Cotisation Foncière des Entreprises)? Here's the answer!
Does the CFE apply to auto-entrepreneurs?
Cotisation Foncière des Entreprises
The CFE or Cotisation Foncière des Entreprises is one of the two components of the Contribution Economique Territoriale (CET). The second component is the Cotisation sur la Valeur Ajoutée des Entreprises (CVAE).
The CFE is based and calculated solely on assets subject to property tax. The amount of this tax varies according to the commune(s) where the company has premises and land. This tax is therefore due in each commune concerned.
Auto-entrepreneurs and micro-entrepreneurs are subject to CFE tax. However, this tax is not due for the year in which you start your business.
In fact, auto-entrepreneurs are taxed from the year following the year in which they first received revenue. CFE taxation is therefore triggered by sales.
Note, however, that to benefit from the exemption in your first year of business, you will need to make an initial declaration before December 31 of the year in which you start your business.
CFE = calculation base x rental value x CFE rate
The CFE is calculated according to three criteria:
- your sales
- rental value
- the rate voted by the local authority.
If you have premises for your business, the rental value of these premises will be used to calculate your tax. However, if the amount is lower than the minimum base for calculating the CFE, your tax will be calculated on the basis of the minimum base.
If, like most auto-entrepreneurs, you are domiciled for tax purposes in your place of residence, you will be taxed on the minimum basis.
This minimum base is defined according to your sales and the rate applied and decided by the municipal council of the commune in which you are located. For information, this minimum base is defined as follows:
- For sales up to €10,000: between €214 and €510
- For sales between €10,001 and €32,600 : between €214 and €1,019
- For sales between €32,601 and €82,800: between €214 and €2,140
Note that the €82,800 ceiling is the maximum amount (sales ceiling) authorized for micro-entrepreneur (auto-entrepreneur) status.
As a micro-entrepreneur (auto-entrepreneur), above this amount you must register under another status.
Initial declaration CFE auto-entrepreneur
In order to pay this tax, you must make the initial CFE auto-entrepreneur declaration. This declaration must be made before December 31 of the year in which you become an auto-entrepreneur, and entitles you to the first year's exemption.
You will have to pay your CFE tax electronically via impots.gouv.fr. Regardless of your sales, you'll have to pay this tax. To do so, you'll need to create a tax account on the site, which will then enable you to pay your CFE directly at the appropriate time. The due date is December 15.
If your CFE is over €3,000, you will be required to pay a deposit before the June 15 deadline.
As a micro-entrepreneur, you'll have to pay the Cotisation Foncière des Entreprises (CFE), regardless of your sales. However, you will be exempt from this tax in your first year of business, provided you have registered on the impots.gouv.fr website and completed the initial CFE declaration form.
The amount of your tax will depend on a number of criteria, including the municipality in which you are located and your sales figures. It will also vary according to your situation. If you run your own business from premises, or if you are domiciled at home for tax purposes, the amount will not be the same.
In all cases, you will have to pay CFE on the basis of a minimum base amount that varies according to your sales and the rate chosen by the local council where you are located.
Paris, one of the least expensive CFEs in France
Note that Paris is one of the communes in France where the minimum CFE charge is the lowest, so consider registering with a specialized company that can offer you a strategic and prestigious address right in the heart of Paris.
Business domiciliation in Paris is an excellent way to save on CFE taxes!
Written by our expert Antoine Dubois
October 10, 2017
