Contribution Fonciere des Entreprises tax (CFE) tax exemption ends

By Valérie Aston on 18 July 2014 · Viewed 8831 times · Questions

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 decreeCFE - Aménagement du barème de fixation de la base minimum et abrogation de l'exonération temporaire en faveur des auto-entrepreneurs

Valerie Lemiere: Start Business in France

About the author: Valérie Aston

I've been helping people who want to start or already have a small business set up in France since 2009. After graduating from a Master of Business Administration (MBA) degree, I worked as a senior marketing consultant in the UK and France for various International companies. I worked as a conseillère en création d'entreprises (senior business advisor) for BGE here in France and run this independent business on a daily basis.