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Business Rates in France for 2016

Tuesday 05 July 2016

A small business in France is liable for business rates, although in most cases only a modest amount is payable.

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

The rates are determined from the value of the real estate you use to run the business.

Even though you may work from home you are still liable for the tax, although normally only at the minimal rate.

There are a number of exemptions from the tax, some permanent and some temporary.

One of the most significant permanent exemptions are artisans who work alone or within a family business.

Owners of a chambre d'hôte or classified gîte accommodation are also exempt (unless the commune decides otherwise), provided the property is either their principle residence or second home.

The level of the rates payable is determined locally, but within parameters set by central government, revised upwards each year in line with inflation.

There are six rate bands, depending on the turnover of the business, as follows:

Small Business Rates 2016
Turnover
Range
≤ €10,000
€214 - €510
> €10,000 ≤ €32,600
€214 - €1,019
> €32,600 ≤ €100,000€214 - €2,140
> €100,000 ≤ €250,000€214 - €3,567
> €250,000 ≤ €500,000
€214 - €5,095
> €500,000
€214 - €6,525

The reference year used for determining the turnover figure is two years prior to the year of imposition. So for rates payable in 2016, the reference year is 2014.

The tax is not payable in the first year of the business, and payable at the rate of 50% in the second year.

Most smaller councils set the minimum rate towards the lower end of each range.

The tax is payable in advance in December for the forthcoming year, and can also be paid monthly by prior registration.

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