Optional exemptions from the Cotisation Foncière des Entreprises (CFE) primarily concern independent bookstores and businesses located in specific areas. These exemptions are subject to municipal or intermunicipal deliberations and strict criteria. To benefit from them, you must file an annual declaration with the competent Service des Impôts des Entreprises (SIE), using the dedicated forms (1447-M-SD or 1447-C-SD) and providing the required supporting documents.
Permanent optional exemptions for bookstores
Bookstores may qualify for permanent CFE exemptions under certain conditions. These exemptions are governed by Articles 1464 I and 1464 I bis of the Code Général des Impôts (CGI).
Labeled Independent Reference Bookstores (LIR)
Bookstores holding the "Librairie Indépendante de Référence" (LIR) label as of January 1 of the tax year may qualify for a permanent CFE exemption if they meet the following criteria:
- Classified as an SME under the European definition.
- At least 50% of the capital is held by individuals or independent companies.
- Not bound by a franchising agreement.
- Compliance with state aid regulations.
The exemption remains valid for the current year even if the LIR label is withdrawn later. However, if the bookstore no longer meets the required criteria, the exemption ceases from the following year.
Non-LIR bookstores
Bookstores without the LIR label may also qualify for an exemption if they meet the following conditions:
- The main activity is the retail sale of new books, accounting for at least 50% of the establishment's turnover.
- Compliance with at least one of the following conditions:
- Holding the "Librairie de Référence" (LR) label as of January 1.
- Not being bound by a franchising agreement.
The deliberation for Article 1464 I bis must precede or coincide with that for Article 1464 I.
Temporary optional exemptions
In addition to permanent exemptions for bookstores, there are temporary CFE exemption schemes applicable upon municipal or intermunicipal deliberation. These exemptions primarily concern:
Businesses in disadvantaged areas
- Urban Free Zones (ZFU-TE): Businesses located in these areas may be exempted for a period of up to 5 years, subject to municipal or intermunicipal deliberation. This exemption applies to commercial, craft, or service activities created or expanded in these zones.
- Priority Neighborhoods of the City Policy (QPV): Commercial activities in these neighborhoods may benefit from a temporary exemption, always based on local deliberation.
- Revitalization Zones of City Centers (ZRCV): Commercial or service activities may be exempted for a limited period if the municipality has adopted the measure.
Young innovative companies
Jeunes Entreprises Innovantes (JEI), Jeunes Entreprises Universitaires (JEU), Jeunes Entreprises de Croissance (JEC), and Jeunes Entreprises d'Innovation à Impact (JEII) may be exempted from CFE for the first 7 years following their creation, provided that:
- The municipality or EPCI has deliberated in favor of the exemption.
- The company meets the specific criteria for each category.
This exemption is governed by Article 1466 D of the CGI and requires an annual declaration.
How to apply for the exemption
The procedure for applying for CFE exemption varies depending on whether it concerns an existing establishment or a new activity.
Forms and deadlines
- Existing establishments: The application must be submitted annually using form 1447-M-SD (CERFA n° 14031). This form must be sent to the competent Service des Impôts des Entreprises (SIE) for the establishment, within the deadlines set for the CFE declaration.
- New activities or change of manager: In the case of the creation of an establishment or a change of manager, the application must be submitted using form 1447-C-SD (CERFA n° 14187), always within the prescribed deadlines.
Required documentation
For bookstores (LIR or LR), the application must be accompanied by:
- Proof of the label (LIR or LR) valid as of January 1 of the tax year.
- Income declaration, to demonstrate that the sale of new books accounts for at least 50% of the establishment's turnover (only for non-LIR bookstores).
- Corporate documents certifying compliance with size and independence criteria.
Corrections and loss of exemption
If a company no longer meets the conditions for exemption during the year, it must report this in the following annual declaration. The exemption ceases from the following year. In the event of a late declaration, the exemption does not apply for the reference year. Retroactive applications are not possible.
Limits and exceptions
Optional CFE exemptions are subject to strict constraints:
- Mandatory deliberation: Without municipal or intermunicipal deliberation, the exemption cannot be applied, even if the company meets all the criteria.
- Franchising agreements: Bookstores bound by a franchising agreement are automatically excluded from exemptions for independent bookstores.
- Exceeding SME thresholds: If a company exceeds the size thresholds (250 employees, €50 million turnover), it loses the exemption from the following year.
- Label withdrawal during the year: The exemption remains valid for the current year but ceases for subsequent years if the label is not renewed.
For temporary exemptions (e.g., ZFU, QPV, JEI), the duration is time-limited and depends on local deliberations. It is not possible to benefit from multiple exemptions simultaneously for the same establishment.