The government has extended the relief of the Cotisation Foncière des Entreprises or CFE to 2012. Some conditions may apply so if you receive a notice to pay 2012 CFE contact your tax office to request the application of this relief.
What Is CFE?
CFE is a local tax calculated on the rental value of the property of domicile of the business activity. It has replaced the local business taxe professionnelle, abolished at the beginning of 2010. Small business owners who set up their business under the auto-entrepreneur self-employment status introduced in France in January 2009 are exempt from paying the CFE during the first three fiscal years of operation.
The CFE tax is due on the 15th of December each year. This is in addition to the personal taxes paid on the main home – the taxe foncière and taxe d’habitation.
It forms part of the new CET tax (Contribution Economique Territoriale) which is split between CFE, and CVAE (Cotisation sur la Valeur Ajoutée des Entreprises), a payment based on the added value of a business and paid only by larger businesses with a turnover over €152,000. The CFE is set by the municipality and based on the value of business premises, irrespective of turnover.