Many auto-entrepreneurs have received their 2011 Contribution Fonciere des Entreprises bill, ranging from 56€ to 900€. This has been a very stressful issue for many, as it was announced last year that all auto-entrepreneurs would be exonerated for 3 years. So where do we stand? Frédéric Lefebvre, the State Secretary in charged of SMEs has confirmed in a letter adressed to FEDAE, that all new auto-entrepreneurs registered in 2009, 2010 and 2011 should benefit from CFE exonoration.
You will shortly receive a bill from the tax people for the "Contribution Fonciere des Entreprises" (CFE). This tax was introduced last year to replace the "Taxe Profesionnelle". All French entrepreneurs with an entreprise individuelle under régime simplifié, EIRL, EURL or SARL are liable to CFE from their second year in business, as there is an exoneration in year one. However auto-entrerepreneur and micro-entreprise should automatically benefit from a three year exoneration.
If you have registered a business in 2010, be it an auto-entrepreneur, micro entreprise, entreprise individuelle, EURL or SARL, you will have received the “Cotisation Foncière des Entreprises 2011” form to complete by the 1st January. Impots need this information to up-date their records, determine whether or not you are liable to Cotisation Foncière des Entreprises and to calculate how much CFE you will pay in the future (i.e. in 3 years for auto-entrepreneurs and in 2011 for other businesses).
As mentioned in my latest article on Taxe Fonciere des Entreprises, the Govenment has confirmed that all auto-entrepreneurs will benefit from a CFE tax exemption for 3 years. This will therefore still apply to you if you have declared a turnover in 2010 and whether or not you have opted for the income tax paid at source.
Last week Frederic Lefebvre, Minister for SMEs, announced that auto-entrepreneurs with no turnover will not pay the Contribution Fonciere des Entreprises (CFE) tax. He also requested for the law to be amended in order to exempt all auto entrepreneurs from CFE for 3 years, whether or nor they opted for the income tax paid at source.
The last couple of weeks have seen an increasing negative buzz growing about the CFE (former Taxe Professionnelle) for auto-entrepreneurs. Many threads and blog entries have been published on French and English forums about the CFE for auto-entrepreneurs. The Federation Des Auto Entrepreneurs (FEDAE) has also decided to lodge a formal complaint to the Government and is trying to change the law, so auto-entrepreneurs with no turnover would not pay the CFE.