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CFE Tax : All the questions answered

We are coming to that end of year.  We’ve just made it through the taxe d’habitation and the taxe fonciere and its the run up to Christmas.  We just think we are done with tax for this year and then ….. CFE tax comes along.  So what is this tax and are you liable?

If you are not a business owner this tax does not concern you, so no need to read further but if you are, then ensure that you are up to date with all the latest information on what this tax is and how you can pay it.  I get questions on this tax all the time so I hope this will go some way to help you plan for this year and hopefully earlier next year  If not, this is something we do organise for you as part of our Serenity Club membership, so do contact us at LBS if you would like to hear more or what this 1m video here

WHAT IS CFE TAX?

It’s a small tax paid by businesses to the local authorities and collected by the tax office. Exoneration for the first year of business and since 1st January 2019 exoneration of CFE professional tax for any auto entrepreneurs with a yearly income of less than 5000 euros.

WHY DO I PAY CFE TAX AND WHEN?
This tax replaced the old professional tax and its based on the space that you use for business along with your earnings.

HOW DO I PAY THE CFE TAX?
This tax is paid online, in your professional account by the 16th December 2019..  We will take care of this for auto entrepreneurs in the serenity club.

HOW DO I SET UP MY ACCOUNT?
It’s a two step process. The account has to be set up in the Professional space of the tax website (www.impots.gouv.fr). You need to request an activation code and then once received, activate your online account ready for payment. You should count 2-3 weeks to complete the process, so start now if you haven’t already.  Again this has been done or is being done at the moment by the LBS team.

IS CFE TAX DIFFERENT FROM PERSONAL TAX?
Yes this is different. It’s a tax based on the property where you manage your business from and not related to your personal tax declaration although they do take into account your business revenues.

DO I ALWAYS NEED TO PAY CFE TAX?
All businesses are exonerated the first calendar year of their activity. After this, the tax office will determine your liability via a questionnaire they will send you just after your business is created.

WHEN DO I NEED TO PAY CFE TAX?
It needs to be paid online in your professional tax space by 16th December.

IF I AM LATE/MISS PAYNIG IT, WHAT DO I DO?
If you are late, then send an email to your local tax office explaining why (technical issues etc) and asking them how you can pay this.

IS THERE A FINE FOR LATE PAYMENTS?
Yes, there is a fine between 5-10%.

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