The endless debate on the Contribution Fonciere des Entreprises tax (CFE) is over: auto-entrepreneurs will have to pay CFE from their second year in business. The update was published on 26th June, as part of the 2014 loi de finance and will be applied in 2014.
For the last 4 years, auto-entrepreneurs managed to benefit from a CFE exemption, due to disagreement between the fiscal administration and the bodies representing the auto-entrepreneurs (including FEDAE) defending the unfairness of this tax.
The minimum CFE amount is determined by the municipalities and EPCI (Etablissement Public de Cooperation Intercommunale). The minimum CFE rate applicable on 1st January 2014 is split up into 6 categories based on the business turnover:
- Less than €10,000 HT (without TVA) – CFE from €210 to €500
- From €10,000 to €32,600 – CFE from €210 to €1,000
- From €32,600 to €100,000 – CFE from €210 to €2,100
- From €100,000 to €250,000 – CFE from €210 to €3,500
- From €250,000 to €500,000 – CFE from €210 to €5,000
- Above €500,000 – CFE from €210 to €6,500
As a rule of thumb, your tax will be higher if your business is based in a big town. For instance an artisan in Les Pieux (department 50, 3,455 inhabitants) may pay 400 euros, while a similar artisans based in Cherbourg (department 50, 25,337 inhabitants) may pay 750 euros.
If you have been in business for less than one year, you will benefit from a CFE exoneration in 2014. For all other businesses, this tax will be due in the fourth quarter of 2014.
Related article: What is Contribution Fonciere des Entreprises tax (CFE)
The decree: CFE - Aménagement du barème de fixation de la base minimum et abrogation de l'exonération temporaire en faveur des auto-entrepreneurs