Does a micro-business have to pay the CFE?

What is the "cotisation foncière des entreprises"?

The cotisation foncière des entreprises (CFE) is a local tax calculated on the basis of the rental value of the real estate used for your business activity. It replaces the business tax.

Together with the cotisation sur la valeur ajoutée des entreprises (CVAE), the cotisation foncière des entreprises (CFE) forms an overall contribution: the contribution économique territoriale (CET).

Does a micro-entrepreneur have to pay CFE?

As anauto-entrepreneur, you are liable for CFE tax, even if you run your business from home and have no business premises. More specifically, you are liable for this tax if your activity :

• in France;
• is of a habitual nature;
• is carried out on a professional basis (for profit);
• is self-employed.

Can a micro-entrepreneur be exempted from CFE?

Certain micro-entrepreneurs are exempt from paying CFE, depending on their situation or the nature of their business. As a micro-entrepreneur, do you qualify for one of these exemptions?

CFE exemption for the first year of business

A micro-business is fully exempt from CFE for the first year of operation, regardless of when it was set up. So if you set up your micro-business at the end of 2023, you won't have to pay any CFE for 2024.

Your tax base is then halved the following year, the first year of taxation.

CFE exemption for certain activities

Certain activities are exempt from payment of the CFE, notably the following (non-exhaustive list):

• Craftsmen ;
• farmers ;
• athletes ;
• some fishermen ;
• artists (painters, sculptors, engravers, draughtsmen, etc.);
• self-employed door-to-door salespeople (VDI), for total gross earnings of less than €7,651;
• press activities ;
• midwives and nurses (unless they are nurses);
• owners who occasionally rent out part of their own home at a reasonable price.

The full list of CFE-exempt activities is available on the public service website.

If your business is on the list of exempt activities, then you don't have to declare and pay CFE.

Other exemptions

Other exemptions exist depending on the location of your micro-business or your sales for the year.

Location zone

With the approval of your municipality, you may be eligible for an optional CFE exemption if your business is located in one of the following specific zones (non-exhaustive list):

• zone d'aide à finalité régionale (ZAFR) ;
• investment support zone for small and medium-sized enterprises (SMEs) ;
• rural revitalization zone (ZRR) ;
• sensitive urban zones (ZUS) ;
• priority urban districts (QPV)...

Other companies also benefit from an optional CFE exemption. These include

• companies located in Corsica ;
• young innovative companies (JIE) and young university companies (JEU);
• live entertainment companies...

To claim CFE exemption as a micro-entrepreneur, you must apply to the Service des Impôts des Entreprises (SIE) via :

• declaration no. 1447-M-SD orappendix no. 1447-E;
• on the other hand, the n°1465-SD declaration when the exemption concerns regional aid zones (ZAFR), investment aid zones for small and medium-sized businesses and rural revitalization zones (ZRR).

Minimum sales

It is also possible to benefit from a CFE exemption if your annual sales are zero or less than €5,000.

How is the CFE calculated for auto-entrepreneurs?

The amount of CFE is calculated differently depending on whether the micro-entrepreneur runs his business from business premises or from home.

CFE auto-entrepreneur with business premises

Do you have professional premises to run your business?

In this case, the amount of the CFE is calculated on the basis of the rental value of the real estate subject to property tax used for the purposes of your business in year N-2. To calculate your CFE for 2023, you must therefore take into account the business premises used for your activity in 2021.

A rate set by your municipality is then applied to the rental value of the property, to determine the amount of your CFE.

The CFE is then calculated as follows: CFE = rate set by the municipality x rental value of property

However, if the rental value of the business premises is too low, or if it is difficult to determine the rental value of the assets used to calculate this contribution, you must pay a minimum contribution. The amount is determined on the basis of sales over 12 months in the year N-2.

Here is the scale for the minimum CFE contribution due in 2023, based on sales in year N-2:

CFE auto-entrepreneur without business premises

Are you a micro-entrepreneur working from home or at your customers' premises? Even if you don't have any business premises, you're still liable for CFE.

The amount is determined on the basis of sales over a 12-month period in year N-2 and the tax rate applicable in your commune.

As it is not always easy to determine the rental value of the property used, the tax authorities use a minimum basis, calculated according to your sales in N-2.

The minimum CFE base and the applicable tax rate vary according to the commune in which your company is domiciled. In other words, you don't pay the same amount of CFE depending on where you're domiciled, even if your sales are identical.

To find out the minimum contribution due in 2023, refer to the previous table and use the following formula: CFE = tax rate x minimum base.

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When to declare the CFE for micro-businesses?

To declare and pay the CFE for your micro-business, you must follow the 3 steps below:

• Fill in the initial CFE declaration(declaration no. 1447-C-SD) and send it to the Service des Impôts des Entreprises (SIE) before December 31 of the year you set up your business. This is compulsory: it enables you to declare your situation to the tax authorities and apply for CFE exemption.
• Create your professional space on the tax site. This is mandatory, as CFE declarations and payments can only be made online. How do I go about it? All you have to do is go to the French tax authorities' website, click on "votre espace professionnel" and enter the following information: your SIREN number, your e-mail address and your contact details. You will then receive an e-mail with a link to activate your professional space.
• Consult your CFE payment notice: from the home page of your professional space, you can consult your CFE payment notice, under the heading "My services", then "Consult" and finally "CFE Notice".

How do I pay the CFE as an auto-entrepreneur?

You must pay the CFE by December 15 of each year, by choosing one of the following methods of payment:

• Online payment (default payment method) ;
• Direct debit (optional payment method, to be taken out before November 30) ;
• Monthly direct debit (optional payment option, to be taken out before June 30): the company is automatically debited every 15th of the month from January to October, in 10 monthly instalments.

If your CFE is more than €3,000, you must pay a deposit between May 31 and June 15, corresponding to half of the contribution to be paid, then the remaining balance on December 15 of the current year.