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Business in France

Small Business Rates in France for 2014

Tuesday 08 October 2013

The government is proposing to introduce new small business rates bands, and to abolish the exemption for auto-entrepreneurs.

The proposals are contained in the draft project de loi finances 2014.

The system of business rates for a small business in France is called the cotisation foncière des entreprises (CFE).

The level of the rates payable is determined locally, but within (rather large) parameters set by central government.

At the present time there are three rates bands. For those with a turnover before tax of under €100,000 the range is €206 to €2,065, which rises to a maximum of €6,102 for those with a turnover in excess of €250,000.

Many councils do choose to tax towards the higher end of the range, which frequently causes considerable difficulty for those businesses with a small turnover.

Accordingly, the government is proposing to abolish the current three bands, and replace them with six bands, as follows.

Small Business Rates 2014
Turnover
Range
≤ €10,000
€210-€500
> €10,000 ≤ €32,600
€210-€1,000
> €32,600 ≤ €100,000€210-€2,100
> €100,000 ≤ €250,000€210-€3,500
> €250,000 ≤ €500,000
€210-€5,000
> €500,000
€210-€6,500

Those businesses who are taxed on the basis of bénéfices non commerciaux (BNC) would have separate turnover bands, which are 50% lower than the above figures. So a BNC business with a turnover between €5,000 and €16,200 would pay on the basis of the second band on the scale.

The other major change is that auto-entrepreneurs will no longer be exempt from business rates for the first two years following the creation of their business. However, those who were exempt in 2013 will continue to hold this exemption for 2014, provided they were eligible under existing rules.

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