Today, let's take a look at the CFE or Cotisation Foncière des Entreprises, the tax that companies are required to pay locally. This tax applies exclusively to companies or self-employed businesses that are not engaged in salaried activities. In this comprehensive guide, we'll take you step-by-step through everything you need to know about the CFE and its payment constraints.
The CFE is a local tax paid by companies and self-employed businesses. Along with the CVAE (Cotisation sur Valeur Ajoutée des Entreprises), the CFE is part of the CET (Contribution Economique Territoriale) and serves as a substitute for the taxe professionnelle. The CFE is calculated on the basis of the company's real-estate taxable assets, and must be paid in all communes where the company has a physical presence.
Certain structures can be exempted from the CFE, as in the case of new businesses, which can be totally exempt in the first year of creation, before receiving a 50% rebate the following year. The same applies to companies with zero sales, which will be totally exempt, or those located in certain zones such as BER (Bassin d'Emploi à Redynamiser), QPPV (Quartier Prioritaire Politique de la Ville) or ZRD (Zone de Restructuration de la Défense), which will be exempt for the first five years. Certain activities, such as handicrafts, public authorities, press agencies and higher education in the arts, sciences and humanities. The list of activities exempt from the CFE is particularly long, so be sure to check the official websites to find out whether or not you are concerned by this tax.
To declare the CFE, the company must file a declaration no. 1447-C, which must then be submitted by December 31 of the year of creation at the latest.
In certain cases, a declaration n°1447-M must be filed no later than the 2nd working day following May 1st. This applies to companies applying for CFE exemption, or those making a change in the consistency or surface area of assets subject to this tax.
If a company modifies any of the items entered on the previous declaration, it must also send this declaration by the required deadline.
After declaring your CFE, a notice will be available online in the company's tax account via impots.gouv.fr.
Tax notices are no longer sent by post, but only online.
The notice can be consulted from May 24, for payment on June 15. This date applies to companies that have not opted for monthly payment, and whose annual contribution is equal to or less than 3,000 euros.
Several informative e-mails will then be sent to alert you to the deadline.
Companies covered by the monthly payment system will be able to consult their tax notices from November 17, with payment due on December 15.
If the company has not opted for monthly direct debit, it will have to pay its contribution after consulting its tax notice.
There are two possible scenarios:
- If you wish to be debited at the due date, you have until November 30 to make this request online at impots.gouv.fr or in person at the relevant Centre de Prélèvement Service (CPS). Once you have signed up for this service, your direct debit contract will be renewed every year if you do not cancel.
- If you choose to pay your tax directly online, the deadline is December 15. All you have to do is click on "Pay" in your professional area to access the payment service.
It's important to respect these payment deadlines to avoid incurringlate payment penalties. In fact, if you pay beyond the limit, you will have to pay a surcharge of 5% applied to the amount due.
You've got your tax notice and the deadline is fast approaching. Don't waste any more time and pay your CFE!
This will depend on whether you have chosen direct debit, monthly direct debit or direct online payment.
- If you've opted for direct debit, you'll be debited directly once you've made the request via impots.gouv.fr or the CPS. You'll find the contact details of this service on your tax notice.
- You can opt to pay your CFE monthly via impots.gouv.fr, or by contacting the CPS. If you opt for this payment system before June 15th, you won't have to make any deposit, and the first payment will be made on the 15th of the following month. This amount will be calculated on the basis of the sum of monthly instalments due since January 1st and the tax rate applied.
- Have you opted for direct online payment? All you have to do is click on "Pay" above the tax notice in your professional space. Remember to declare your bank card beforehand to ensure final payment. You can also pay via impots.gouv.fr, quoting the reference number of your CFE notice.
Now you've got everything you need to pay your CFE on time!
Written by our expert Maeva Girardot
October 27, 2017
