TLDR: The Cotisation Foncière des Entreprises (CFE) provides permanent and temporary exemptions for certain categories of self-employed workers and specific activities. These exemptions are either automatic or discretionary, based on territorial or sectoral criteria. Key cases include artist-authors, craftsmen, agricultural activities, non-profit associations, and certain public or military activities.
Permanent exemptions for artists and creators
Artists and creative professionals automatically qualify for CFE exemptions under specific conditions. This includes:
- Visual artists: painters, sculptors, engravers, and draftsmen selling exclusively their own works.
- Photographer-authors: for the transfer of photographic artworks or rights to these works.
- Literary and performing authors: writers, playwrights, composers, choreographers, and co-authors of audiovisual works. Software authors are excluded.
- Copywriters: for writing promotional texts (brochures, reports, email campaigns, videos) if intended to promote products or services.
Exemptions for craftsmen and agricultural activities
Craftsmen are exempt from CFE if registered in both the National Business Register (RNE) and the Trade and Companies Register (RCS). Agricultural and fishing activities are also exempt, with no additional conditions.
Exemptions for non-profit entities
Associations governed by the 1901 law and non-profit are exempt from CFE if operating in specific fields: cultural, educational, healthcare, social, sports, or tourism. Professional unions and their federations are also exempt for activities related to studying and defending the collective interests of their members.
Exemptions for public entities and specific activities
Certain activities carried out by public entities or state organizations are exempt, while others remain taxable. Examples include:
- Fundamental research: public research institutions in scientific and technological fields are exempt for their fundamental research activities.
- Consular chambers: Chambres des Métiers, Chambres de Commerce et d'Industrie (CCI), and Chambres d'Agriculture are exempt for their administrative or educational missions.
- Armed forces: operational military activities, such as operational readiness, routine maintenance, and repair of military equipment, are exempt if linked to national defense.
Temporary exemptions for disadvantaged areas
In certain geographically designated priority areas, businesses may qualify for temporary CFE exemptions. These cases include:
- Priority Development Zones (ZDP): newly established businesses in these zones are exempt, including non-sedentary traders.
- Priority Neighborhoods of the City Policy (QPV): commercial activities in these neighborhoods may be temporarily exempt, subject to conditions.
Taxable activities
Some activities remain taxable even if carried out by public entities, including:
- Manufacturing, constructing, or overhauling military equipment in state industrial facilities.
- Mining activities, except for the extraction and initial processing of extracted materials.