The Cotisation Foncière des Entreprises (or CFE) is a local tax paid by businesses since 2010.
The CFE applies to all companies and individuals who carry out a self-employed professional activity on a regular basis.
The CFE rate is set by the local authority or by public establishments for inter-communal cooperation.
Each year, the taxpayer must file a declaration of his tax base.
Corporate domiciliation allows you to choose an address for your company. By choosing a commune with a low rate, you can be sure of paying less for your membership.
Domiciliation + company transfer Kbis fast and 100% online
Although there are many exemptions, it can represent a substantial cost, especially for small businesses. Fortunately, there is a way to reduce the burden of your CFE.
The Cotisation Foncière des Entreprises (or CFE) is a local tax paid by businesses since 2010. It replaces part of the business tax. It is one of two contributions to the territorial economic contribution (CTE), along with the Cotisation sur la Valeur Ajoutée des Entreprises (CVAE). It is based on property subject to property tax, and is due in each commune in which the company has premises or land.
The CFE is levied on all companies and individuals who carry out a non-salaried professional activity on a regular basis, unless exempted. Self-employed entrepreneurs are also subject to the CFE.
In other words, all companies and self-employed businesses are covered, except for craft businesses, agricultural activities, public authorities, certain press activities, fishermen, painters and sculptors, etc. In addition, local authorities can vote for exceptional exemptions.
The list is long and not exhaustive. You can find all the CFE exemptions on the public service website.
The CFE calculation takes three factors into account:
The tax base
Rental value
The CFE rate
The tax base varies according to the company's sales bracket. The rental value is indexed to the property subject to property tax. The property must be under the control of the taxpayer concerned, whether owner or tenant. It is calculated in relation to the penultimate year (N-2) before the tax year (N).
The CFE rate is set by the local authority or by public inter-municipal cooperation bodies. This rate can therefore vary widely from one commune to another. Companies must pay CFE for each commune in which they operate.
The CFE amount is therefore calculated as follows: Tax base x Rental value x CFE rate
New businesses (including micro-entrepreneurs) are not subject to the Cotisation Foncière des Entreprises in the year they are set up. Then, in the first year of taxation, the company benefits from a 50% reduction in the tax base.
To benefit from this reduction, the company must submit a duly completed 1447-C-SD declaration to the tax authorities before December 31 of the calendar year in which it was set up, in order to qualify for exemption from the business property tax.
Each year, the taxpayer must file a declaration of his taxable base. In practice, this declaration is only necessary when there is a change in the tax base. In this case, the declaration must be made in May at the latest.
The taxpayer will then receive a dematerialized tax notice from his commune. Payment can be made in one of two ways:
Down-payment system: This is the default payment method. In this case, 50% of the previous year's CFE must be paid by June 15, with the remainder due by December 15.
By monthly instalments: In this case, the taxpayer must make the request.
As mentioned above, the CFE rate is set locally. For example, it's much cheaper in Paris than in Saint-Ouen. Fortunately, there is a solution that can help you radically reduce the amount of your Cotisation Foncière des Entreprises. Corporate domiciliation allows you to choose an address for your company. When making your choice, it's a good idea to find out what the CFE rates are in each commune. By choosing a commune with a low rate, you're sure to pay less for your contribution:
Paris CFE is one of the cheapest in France!
The table below highlights the difference in CFE between Saint-Ouen and Paris for a domiciliation (the minimum m2 threshold is automatically taken into account). For the same sales, the CFE in Paris is significantly lower :
A simple solution is online company domiciliation. With it, you can obtain an address at the location of your choice in just a few minutes. It's available 24 hours a day, and very easy to do. This way, you'll have an address that will reduce your CFE costs, as well as additional services to suit your company's needs, such as mail forwarding or scanning.
