TLDR: Since 2014, auto-entrepreneurs no longer benefit from the temporary exemption from CFE. They are subject to this tax under general law, with limited exceptions and specific conditions.
End of temporary exemption
Since January 1, 2014, auto-entrepreneurs no longer benefit from the temporary exemption from the Cotisation Foncière des Entreprises (CFE). This change was introduced by Article 76 of Law No. 2013-1278, making auto-entrepreneurs subject to CFE under general law.
Exceptions and specific conditions
A transitional exemption was provided for auto-entrepreneurs who benefited from their first year of exemption in 2013. These individuals remain exempt from CFE for 2014, provided they continue to meet the exemption conditions set out in Article 1464 K of the Code Général des Impôts (CGI) as in force on December 31, 2013.
No taxation in the absence of turnover
Auto-entrepreneurs are not liable for CFE as long as they have not generated any turnover or revenue. If they receive a CFE tax notice, they can request a refund by providing proof of the absence of turnover and salaries.
Caps on the minimum taxable base
The minimum taxable base for CFE is capped for auto-entrepreneurs with an annual turnover of less than €100,000 (excluding VAT). The scale distinguishes three categories for taxpayers with a turnover of less than €100,000 and two categories for those with a turnover exceeding €250,000.
Exemptions in distressed urban areas
Temporary CFE exemptions are provided for businesses located in distressed urban areas (ZUS, ZRU, ZFU). The exemption thresholds for 2014 are set at €28,408 of net taxable base for ZUS and ZRU, and €76,629 for ZFU.
Impact on auto-entrepreneurs
The removal of the temporary CFE exemption has led to an increase in fixed costs for auto-entrepreneurs. However, CFE remains proportional to turnover due to the introduced caps, offering some flexibility in the absence of revenue-generating activity.
Exemptions for very small businesses
Very small businesses (fewer than ten employees and annual turnover not exceeding €2 million) engaged in commercial activities in priority neighborhoods of urban policy may benefit from temporary exemptions from CFE, CVAE, and TFPB.