CFE is a local business tax.

It is to be paid by all businesses, regardless of the form (micro, EI or company). The amount to be paid depends on where your business is registered, the surface of your business premises and the yearly revenue. The amount ranges from 223€ to several thousand, and is calculated according to a complex formula by the tax office.

When you first establish your business, you need to file the initial declaration by the 31st of December of the first calendar year you are in business. There is no tax due for that year. If you work from home, you need to estimate which floor surface is dedicated to your business. If you only work at your customers’, and never frothe from home, you are allowed to declare “0”. In this case you will pay the minimum amount as per your location and revenue. Normally, the form will arrive py post to the registered address of your business. If not, you can download it online from the tax website. https://www.service-public.fr/profession…/vosdroits/R17761

The tax is calculated on the N-2 basis, meaning that in November of year N (2024 for example), the tax office is calculating the CFE based on information from year N-2 (that would be 2022 in our example), or on your revenue during the 1st and 2nd year of business.

You will find a document detailing the calculations and the amount to be paid in your professional space on impots.gouv.fr website:

Those with the annual turnover in N-2 less than 5000 euros are exonerated from this tax completely. There are other cases for permanent or temporary exemption (depending on your activity type and location) – you can find an up-to-date list in French here: https://www.service-public.fr/profession…/vosdroits/F23547

CFE must be paid by the 15th of December. If the amount of your tax is more than 3000€ you must pay 50% by the 16th of June, and the other half in December. When you pay for the first time, you can set up a direct debit, so that the amount is taken automatically from your bank account to avoid forgetting about it. You can also opt for a monthly payment (10 payments, January to October, needs to be set up before the 30th of June).

According to my experience, the amount due is not always calculated correctly, so if you doubt it – for example, no change in revenue level or business location, but the amount is double what you paid last year, do not hesitate to contact your tax office for more details.

Important: Every situation is different and may need professional advice. The information on the Compte Plus website is general and should not replace legal, accounting, or tax counsel. If in doubt, contact a specialist for tailored advice.