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The Law and the Executions on the Taxes

Established by the 2010 finance law, the Business Land Contribution (CFE), together with the Business Added Value Contribution (CVAE), constitutes the Territorial Economic Contribution (CET). This contribution replaces the professional tax and the minimum professional tax contribution. In 2017, there are temporary exemptions.

The Submissions By Friday

Recently, the government announced a new series of measures aimed at restaurants, cafes, hotels, businesses in the tourism, events, sport and culture. As a reminder, places “open to the public and not essential to the survival of the Nation” have been closed since March 15, 2020 to fight against the spread of the coronavirus. Among the measures announced today, the executive assured that it would discuss with local authorities on the modalities of postponing the property contribution of companies. Through taxfyle the taxes can be submitted properly.

Who is affected by the business property tax?

Based on the rental value of property subject to property tax, the CFE is aimed at all people who exercise a self-employed professional activity. Thus, individual businesses such as self-employed persons, liberal professions, commercial or craft businesses are subject to the payment of this tax. This contribution is for the exclusive benefit of the municipalities.

Calculation and reduction of the property tax for companies

The calculation of the amount of the CFE corresponds to the multiplication of the tax base by the tax rate set by the municipality. Each municipality has its own rate which should be requested from the tax service. However, the amount of the CFE may claim a reduction as part of a reduction caused by a decline in activity from one calendar year to another or even as part of a tax credit allocated to companies. located in defense restructuring zones and having employees. Despite these reduction possibilities, companies subject to the CFE are liable for a minimum contribution which is determined by the municipal council.

Payment of the business property contribution

An annual declaration is no longer compulsory. The CFE declaration must be submitted no later than the second working day following May 1 of the year preceding the tax if the contributor requests an exemption, in the context of a modification of the assets subject to the CFE or if the contributor is’ registered as part of the flat-rate tax on network companies. The payment of the CFE is made in two payments. The first deposit is eligible on June 15 if the amount of the CFE is equal to or greater than 3,000 euros while the second must be made on December 15.

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