How can auto-entrepreneurs optimize their CFE rate?
Opting for the status of auto-entrepreneur is a wise choice, offering young business creators numerous advantages. However, individual entrepreneurs must also pay certain taxes.
As an auto-entrepreneur, you are subject to the Cotisation Foncière des Entreprises (CFE) under the conditions of ordinary law. SeDomicilier gives you a few tips for optimizing your CFE rate.
Change your company's location
When setting up a new business, there are several options available to self-employed entrepreneurs when it comes to domiciliation. It's up to you to choose the most advantageous solution for your business, based on the many options available.
If, for example, you choose to domicile your business at home, the area in which you live will have a significant impact on the amount of CFE you have to pay each year. This can be a particularly costly option for your company.
As an auto-entrepreneur, you also have the option of domiciling your business in a coworking space, although this is not the most recommended solution. You can also use the services of a domiciliation company to find a registered office for your business.
By using a domiciliation company like SeDomicilier to establish your company's head office, the cost of your CFE will be greatly reduced. In fact, our domiciliation company will help you choose a location that is fiscally advantageous for your business. You can also use our CFE calculator to determine the most advantageous location for your company. Choosing our domiciliation company means you can benefit from an address in a well-known neighborhood, while paying less tax for your business.
Opt for a simplified micro-tax system
For several years now, as an auto-entrepreneur, you've been able to choose the simplified micro-tax system for your business. Set up by the French government, the main aim of this special scheme is to reduce the amount you have to declare in your accounts, and the amount you have to declare in your tax return. As an auto-entrepreneur, you can pay tax on a flat-rate basis, rather than on an actual basis.
To benefit from the simplified micro-tax regime, however, the auto-entrepreneur must enter the amount of his company's income or sales on his annual tax return. This will then enable the tax authorities to automatically calculate the value of the taxable profit by applying a flat-rate allowance for all professional expenses.
Only certain categories of sole proprietorships are eligible for the simplified micro-tax regime. This is in fact the case for an individual industrial, commercial, craft or liberal entrepreneur, who achieves a certain turnover up to a certain threshold. To this end, the 2020 Finance Act raised the sales ceilings for a company to benefit from the simplified micro-tax regime.
An auto-entrepreneur working in the liberal professions or providing services must not exceed company sales of €77,700 excluding VAT. An auto-entrepreneur who runs a commercial business and an accommodation business must not exceed sales of €188,700 excluding VAT if he or she wishes to benefit from the simplified micro-tax regime for his or her company.
For the years 2023, 2024 and 2025, the basic VAT exemption thresholds are 36,800 euros and 47,600 euros respectively for service companies and lawyers. They are fixed, at 91,900 euros and 36,800 euros, for companies selling goods and for other liberal professions. The higher thresholds have also been raised for these years, to 101,000 euros for sales companies and 39,100 euros for service providers.
What's more, as an auto-entrepreneur, you need to know which taxes apply to your status? With the help of a professional, you'll have all the answers you need to your questions about auto-entrepreneur status and the taxes you have to pay.
Written by our expert Editorial staff
June 16, 2023
How can I reduce my CFE tax?
CFE rates vary from one commune to another. In fact, premises with the same surface area as another, but located in a different commune, may be subject to a separate CFE.
1. Choose the right location
CFE rates vary from one commune to another. In fact, premises with the same surface area as another, but located in a different commune, may be subject to a separate CFE. To choose the right location for your business, call on a domiciliation company like SeDomicilier. Our company will help you choose a location, taking into account not only the CFE rate, but also access facilities and your target clientele.
2. Choose a tax-advantaged zone
Establishing your business in certain assisted zones offers the possibility of benefiting from CFE exemptions. This is particularly the case when you locate your company in a ZFU, a regional aid zone, a sensitive urban zone or a rural revitalization zone. You can also benefit from a CFE exemption by locating your company in a defense restructuring zone or a revitalized employment area.
3. CFE exemption for the first year of business
As an auto-entrepreneur, no CFE is due for the first year of your business. To do this, you must complete the initial CFE declaration form (form n° 1447-C-SD) and send it to the entrepreneurial tax department before the end of the first year of activity.
Payment of the Cotisation Foncière des Entreprises is particularly straightforward. As for the tax, it must be paid by December 15th of each year, after deduction of the deposit paid on June 15th. If the amount of CFE paid the previous year is less than €3,000, the auto-entrepreneur is not required to pay this deposit.
Auto-entrepreneur: is the CFE compulsory?
As is the case for companies, all individuals who carry out a non-salaried activity on a regular basis are obliged to pay CFE. This obligation applies to all businesses, regardless of their tax regime, legal status or the nature of their activities, and whether the auto-entrepreneur carries out an industrial, commercial, agricultural or craft activity, he or she must pay this contribution on land and premises.
What is the CFE?
The "cotisation foncière des entreprises" is a local tax based on the property rental value of the assets allocated to your business. Whatever its legal status, tax regime or activity, every company in France must pay the CFE in every commune where it has a registered address.
