Asked about the French Cotisation Foncière des Entreprises (CFE) for self-employed individuals.
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Skill Metadata
| Field | Value | |-------|-------| | Jurisdiction | France | | Jurisdiction Code | FR | | Primary Legislation | Code Général des Impôts (CGI), articles 1447 to 1478 | | Supporting Legislation | CGI art. 1647 D (minimum contribution); art. 1449-1466 (exemptions) | | Tax Authority | DGFiP (Direction Générale des Finances Publiques) | | Contributor | Open Accountants | | Validated By | Pending -- requires validation by French expert-comptable | | Validation Date | Pending | | Skill Version | 1.0 |
[T1] Tier 1 -- Deterministic
Apply exactly as written.
[T2] Tier 2 -- Reviewer Judgement Required
Flag and present options.
[T3] Tier 3 -- Out of Scope / Escalate
Do not guess.
CFE definition
CFE is a local business tax (part of the CET -- Contribution Économique Territoriale, which replaced the old taxe professionnelle). All persons exercising a professional activity on 1 January of the tax year are liable.CGI art. 1447
CFE composition formula
CFE = base_imposable × taux_communal + taxes_additionnellesCGI art. 1447
Base imposable
Valeur locative cadastrale (cadastral rental value) of business premisesCGI art. 1447
Taux communal
Rate set by the municipality (commune)CGI art. 1447
Skill Metadata
| Field | Value |
|---|---|
| Jurisdiction | France |
| Jurisdiction Code | FR |
| Primary Legislation | Code Général des Impôts (CGI), articles 1447 to 1478 |
| Supporting Legislation | CGI art. 1647 D (minimum contribution); art. 1449-1466 (exemptions) |
| Tax Authority | DGFiP (Direction Générale des Finances Publiques) |
| Contributor | Open Accountants |
| Validated By | Pending -- requires validation by French expert-comptable |
| Validation Date | Pending |
| Skill Version | 1.0 |
Before computing, you MUST know:
If location is unknown, STOP. CFE rates are set by municipalities and vary widely.
Legislation: CGI art. 1467
The valeur locative cadastrale is the theoretical annual rental value of the business premises as assessed by the cadastre. It is NOT actual rent paid.
[T2] -- The exact rate is municipality-specific. Cannot compute without the commune's rate. Use impots.gouv.fr to look up specific rates.
Minimum CFE Brackets (2025) (CGI art. 1647 D)
| Chiffre d'Affaires (CA) or Recettes | Minimum Base Range (set by commune within these bounds) |
|---|---|
| CA <= EUR 10,000 | EUR 243 -- EUR 579 |
| EUR 10,001 -- EUR 32,600 | EUR 243 -- EUR 1,158 |
| EUR 32,601 -- EUR 100,000 | EUR 243 -- EUR 2,433 |
| EUR 100,001 -- EUR 250,000 | EUR 243 -- EUR 4,056 |
| EUR 250,001 -- EUR 500,000 | EUR 243 -- EUR 5,793 |
| CA > EUR 500,000 | EUR 243 -- EUR 7,533 |
The commune chooses a specific amount within the range. Each commune's minimum is different.
Other Exemptions
| Exemption | Duration | Legislation |
|---|---|---|
| Artisans (no employees, manual work) | Permanent | CGI art. 1452 |
| Taxi drivers (1 vehicle) | Permanent | CGI art. 1453 |
| Artists (painters, sculptors, etc.) | Permanent | CGI art. 1460 |
| Vendors with CA < EUR 5,000 | Permanent | CGI art. 1647 D bis |
| ZFU (Zone Franche Urbaine) | 5 years (+ 3-9 degressive) | CGI art. 1466 A |
| ZRR (Zone de Revitalisation Rurale) | 5 years | CGI art. 1465 A |
Payment Schedule (CGI art. 1679 quinquies)
| Obligation | Deadline |
|---|---|
| Acompte (advance, if prior-year CFE > EUR 3,000) | 15 June (50% of prior-year CFE) |
| Solde (balance / full payment) | 15 December |
| Payment method | Online via impots.gouv.fr (mandatory for all) |
Tax Deductibility
| Question | Answer |
|---|---|
| Is CFE deductible from taxable income? | YES -- as a charge d'exploitation (business expense) |
| For micro-entrepreneurs? | NO direct deduction (already covered by the micro-fiscal abatement) |
| For régime réel? | YES -- fully deductible |
Situation: Client registered as auto-entrepreneur in May 2025. Resolution: Exempt from CFE for 2025 (creation year). Must file form 1447-C-SD before 31 December 2025. CFE begins in 2026 with 50% base reduction.
Situation: Software developer working from home apartment, no dedicated office space rented. Resolution: Cotisation minimum applies (based on CA bracket). If CA is EUR 25,000, minimum base is between EUR 243 and EUR 1,158 (set by commune). CFE = minimum_base x commune_rate.
Situation: Part-time freelancer with EUR 3,500 annual turnover. Resolution: Exempt from cotisation minimum CFE (since CA <= EUR 5,000). No CFE due if also no identifiable business premises with cadastral value.
Situation: Client is a self-employed carpenter working alone with no employees. Resolution: Artisan exemption applies under CGI art. 1452 if: works principally with manual labour, registered with Chambre de Métiers, and has no salaried employees (apprentices are allowed). Permanent CFE exemption.
Situation: Client has a registered office in Paris and a workshop in Lyon. Resolution: CFE is due separately in each commune where the client has premises. Each commune applies its own rate to the valeur locative of premises in its territory. [T2] -- confirm each commune's rate.
Situation: Client ceases activity on 30 June 2025. Resolution: CFE is due for the full year 2025 (assessed on 1 January status). No pro-rata reduction for cessation mid-year. CFE ceases from 1 January of the year FOLLOWING cessation.
Situation: Client is based in a Zone Franche Urbaine. Resolution: Potential 5-year exemption (+ degressive period). Must meet employment and turnover conditions. [T2] -- confirm zone eligibility and conditions with local SIE (Service des Impôts des Entreprises).
Situation: Client's CET (CFE + CVAE) exceeds 1.625% of value added. Resolution: Plafonnement applies. Request cap calculation from SIE. [T2] -- CVAE computation needed for businesses with CA > EUR 500,000.
Input: Auto-entrepreneur registered June 2025, CA EUR 20,000. Expected output: CFE 2025 = EUR 0 (creation year exemption). Must file 1447-C-SD.
Input: Business created 2024, premises valeur locative EUR 2,000, commune rate 25%, CA EUR 40,000. Expected output: Base = EUR 2,000 x 50% = EUR 1,000. CFE = EUR 1,000 x 25% = EUR 250. Check against cotisation minimum for CA EUR 40,000.
Input: Freelancer at home, no separate premises, CA EUR 25,000, commune minimum EUR 800. Expected output: CFE = EUR 800 x commune rate. If commune rate 22%, CFE = EUR 176. But if cotisation minimum is set as a fixed amount (EUR 800 after rate), then CFE = EUR 800.
Input: Part-time consultant, CA EUR 4,500. Expected output: Exempt from cotisation minimum. CFE = EUR 0 (if no identifiable premises).
Input: Self-employed plumber, works alone, registered with Chambre de Métiers. Expected output: Permanent exemption under CGI art. 1452. CFE = EUR 0.
Input: Established business, prior-year CFE EUR 4,500, CA EUR 350,000. Expected output: Acompte due 15 June = EUR 2,250 (50% of prior year). Solde due 15 December = remainder after recalculation.
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Other France computations in the OpenAccountants Tax Library.
Taxes additionnelles
Chamber of commerce/industry levy, frais de gestionCGI art. 1447
Standard base formula
base_imposable = valeur_locative_cadastrale × coefficient_de_revalorisationCGI art. 1467
Home-based business rule
If the self-employed person works from home: the valeur locative of the portion of the home used for business applies. In practice, this is often very low (a fraction of the home's cadastral value). If no identifiable business premises exist, the cotisation minimum applies.CGI art. 1467
Second-year base reduction
In the second year of activity (first year after the creation year exemption), the base is reduced by 50%.CGI art. 1467
Municipal rate range
Each municipality sets its own CFE rate annually. Rates typically range from 15% to 35% of the base, but can be higher or lower. Additional rates apply for EPCI (intercommunalité), department, and chamber of commerce.CGI art. 1636 B sexies
Cotisation minimum rule
If the calculated CFE based on the actual valeur locative is below a threshold, a cotisation minimum applies. The minimum is set by the municipality based on the taxpayer's chiffre d'affaires.CGI art. 1647 D
Minimum CFE Brackets (2025)
| Chiffre d'Affaires (CA) or Recettes | Minimum Base Range (set by commune within these bounds) | |-------------------------------------|--------------------------------------------------------| | CA <= EUR 10,000 | EUR 243 -- EUR 579 | | EUR 10,001 -- EUR 32,600 | EUR 243 -- EUR 1,158 | | EUR 32,601 -- EUR 100,000 | EUR 243 -- EUR 2,433 | | EUR 100,001 -- EUR 250,000 | EUR 243 -- EUR 4,056 | | EUR 250,001 -- EUR 500,000 | EUR 243 -- EUR 5,793 | | CA > EUR 500,000 | EUR 243 -- EUR 7,533 |CGI art. 1647 D
Micro-entrepreneur CFE liability
Micro-entrepreneurs are subject to CFE on the same basis. The minimum contribution applies if they have no identified business premises.CGI art. 1647 D
Exemptions legislation
See exemptions listed below.CGI art. 1449-1466
First-year exemption
The year of business creation is fully exempt from CFE. If business is created on 15 March 2025, no CFE is due for 2025. CFE begins in 2026 (with 50% base reduction in this second year). Client must file form 1447-C-SD (declaration) before 31 December of the creation year.CGI art. 1449-1466
Other Exemptions
| Exemption | Duration | Legislation | |-----------|----------|-------------| | Artisans (no employees, manual work) | Permanent | CGI art. 1452 | | Taxi drivers (1 vehicle) | Permanent | CGI art. 1453 | | Artists (painters, sculptors, etc.) | Permanent | CGI art. 1460 | | Vendors with CA < EUR 5,000 | Permanent | CGI art. 1647 D bis | | ZFU (Zone Franche Urbaine) | 5 years (+ 3-9 degressive) | CGI art. 1466 A | | ZRR (Zone de Revitalisation Rurale) | 5 years | CGI art. 1465 A |
Cotisation minimum exemption for low CA
Since 2019, businesses with chiffre d'affaires or recettes not exceeding EUR 5,000 are exempt from cotisation minimum CFE.
Computation steps overview
See sub-steps 6.1 to 6.5 for the full computation.
Verify liability logic
IF year_of_creation: EXEMPT (no CFE due) IF CA <= 5,000: EXEMPT from cotisation minimum IF artisan/taxi/artist exemption applies: EXEMPT
Determine base logic
IF identifiable_business_premises: base = valeur_locative × revalorisation_coefficient IF second_year_of_activity: base = base × 50% ELSE: base = cotisation_minimum_of_commune (based on CA bracket)
Apply municipal rate logic
CFE_brut = base × taux_communal CFE_brut = max(CFE_brut, cotisation_minimum)
Add additional taxes logic
total_CFE = CFE_brut + frais_de_gestion (1%) + taxe_CCI (if applicable)
CET cap rule
The total CET (CFE + CVAE) cannot exceed 1.625% of valeur ajoutée (value added). If it does, a cap (plafonnement) applies.
Payment Schedule
| Obligation | Deadline | |------------|----------| | Acompte (advance, if prior-year CFE > EUR 3,000) | **15 June** (50% of prior-year CFE) | | Solde (balance / full payment) | **15 December** | | Payment method | Online via impots.gouv.fr (mandatory for all) |CGI art. 1679 quinquies
No acompte in second year
No acompte in the second year (first year of CFE liability) since there is no prior-year reference.
Tax Deductibility
| Question | Answer | |----------|--------| | Is CFE deductible from taxable income? | YES -- as a charge d'exploitation (business expense) | | For micro-entrepreneurs? | NO direct deduction (already covered by the micro-fiscal abatement) | | For régime réel? | YES -- fully deductible |
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