Hi I'm Mathilde, a french lawyer passionate about entrepreneurship and expatriation. here is another edition of my blog "start and grow your business in france"
If you are a business owner in France, you're likely familiar with the Contribution Foncière des Entreprises (CFE), a local business tax. To ensure smooth operations and stay compliant, it's important to understand and manage your CFE declaration and payments efficiently. In this blog post I'll guide you through these processes.
1. understanding CFE
The Contribution Foncière des Entreprises, commonly referred to as CFE, is a local business tax in France.
The CFE tax is assessed on the value of a business's real estate assets, particularly properties used for business purposes. It is payable annually and is an essential source of revenue for local governments.
2. who must pay the CFE?
The CFE is due by companies and self-employed people, regardless of their legal status, their activity or their tax regime. Micro-enterprises are therefore affected by this contribution.
👉 Several exemptions are available to certain businesses in France. These exemptions can be categorised into the following groups:
> Very small businesses : Businesses whose amount of turnover or revenue does not exceed €5,000 are exempt from contribution.
> Newly Created Businesses : In an effort to encourage entrepreneurship, newly created businesses may be exempt from CFE for their first year of operation.
> Certain Professions : Some professionals such as doctors, lawyers, artists and athletes, etc. may benefit from reduced or exempted CFE rates.
> Specific Locations : Some regions and municipalities offer tax incentives to attract businesses. Depending on your business's location, you might qualify for an exemption or reduction in CFE.
3. how to declare the CFE
If you created your business in 2023 it is mandatory to complete the declaration before January 1st, 2024 (even if you think you are exempt). You must:
> Step 1: Access the appropriate Online Portal
Visit the official tax website impots.gouv.fr and access the dedicated space for businesses.
> Step 2: Complete the CFE Declaration
Once you're in your business space, navigate to the section for CFE. You will find an option to declare your CFE. Click on it to get started.
> Step 3: Provide Business Information
You'll be asked to provide information about your business, such as the SIRET number, legal form of your business, the size of your premises and the surface area allocated to your activity.
> Step 4: Declare Exemptions (if applicable)
If your business qualifies for any CFE exemptions, make sure to declare them during this process. Some exemptions may require additional documentation, so be prepared to provide the necessary proof.
> Step 5: Submit Your Declaration
Once you are satisfied that all the information is correct, submit your CFE declaration. The system will generate a summary for your records.
You'll have to repeat this process each time your business moves.
4. HOW TO PAY THE CFE?
After successfully declaring your CFE, you'll receive each year a payment notice (avis de paiement) in your business page on the official tax website impots.gouv.fr
- If less than 3000 euros: the CFE must be paid in full before December 15.
- In other cases: you must pay a 50% deposit before June 15. The remaining balance is paid before December 15.
The CFE must be paid by an electronic means of payment: direct online payment, monthly direct debit or on the due date.
👉 Do you not see the payment notice on your business page?
If by mid-November you receive nothing, it means you are exempt from CFE.
You have nothing to do. In short, rejoice!
If you find the CFE payment process complex or have a business structure with unique tax considerations, consider consulting me, I can ensure your declaration and payment are accurate and compliant! Feel free to drop me an email at contact@mathildeletessieravocate.com
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Hey! I'm Mathilde, a lawyer passionate about entrepreneurship and expatriation. I support expatriates in setting up and growing their business in France. Do you have any questions or concerns regarding your business? I'm here to guide you!
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