Selecting a language will automatically trigger the translation of the page content.

Company Property Assessment (CFE)

Verified 01 January 2022 - Directorate of Legal and Administrative Information (Prime Minister), Ministry of Finance

The company Property Assessment (EFC) is one of the 2 components of the Territorial Economic Contribution (TFB) with the company Value Added Assessment (EAC). Unlike the business tax, which includes most of the rules, the EFC is based only on property subject to property tax. This tax is due in each municipality where the company has premises and land.

General case

The EFC must be paid by businesses and individuals who regularly exercise self-employed. This is regardless of their legal status, the nature of their activity, their taxation regime and their nationality.

Please note

companies with a turnover or revenue of less than or equal to €5 000 are exempt from CFE.

The activity taxable to the CFE must be carried out in France and fulfil all of the following conditions:

  • It must be of a habitual nature
  • It must be exercised in a professional capacity
  • It must be self-employed (this means that employees are not covered by the CFE)

Rental and sub-leasing of bare premises for residential use is not covered by the EFC where it is not a professional activity.

Other rental or sub-leasing activities are covered by the CFE when they generate a turnover or gross revenue excluding taxes of at least €100 000.

The CFE does not apply to the furnished rental of certain units which form part of the owner's main residence.

Built and non-built properties fall within the scope of the EFC, except for permanent or temporary exemptions granted to certain companies.

CFE exemptions can be permanent or temporary.

Permanent Exemption

The following organisations and individuals are permanently and automatically exempt from EFC, subject to a number of conditions:

  • Territorial communities, public institutions and government agencies
  • Major seaports, autonomous ports, ports managed by territorial authorities, public institutions or mixed economy businesses (except pleasure ports)
  • Agricultural operators, certain employers' groups and certain GIE: titleContent
  • Some agricultural cooperatives and their unions
  • Workers who work either for individuals with materials provided or on their behalf with materials belonging to them, whether or not they have a sign or a shop, when they use only the apprentice(s) contest aged up to 20 years at the beginning of the apprenticeship
  • Taxi or ambulance drivers, owners or tenants of 1 or 2 cars, of 7 places maximum (excluding the driver's seat), whether they drive or manage themselves, provided that the 2 cars are not in service at the same time and that they respect the regulatory tariffs
  • Cooperatives and unions of cooperative businesses of craftsmen, cooperative businesses and unions of cooperative businesses of boatmen, maritime cooperative businesses
  • Some fishermen, artisanal fishing businesses and marine registrants
  • Cooperative and Participatory businesses (Scop)
  • Independent Home Vendors (VDIs), for their total gross remuneration less than €6,787
  • Private establishments of first and second degree under contract with the State and of higher education under contract or recognised as being of public interest
  • Faculty of Letters, Science and Accreditation and primary teachers who provide their instruction personally, either at their home or at the student's home, or in a non-teaching and non-special accommodation space
  • Painters, sculptors, engravers and draughtsmen considered artists and selling only the product of their art
  • Photographers authors, for their activity related to the making of photographs and the assignment of their works of art or copyright
  • Authors, composers, choreographers, copyrighted translators, and certain categories of entertainment entrepreneurs (live shows)
  • Lyrical and dramatic artists
  • Independent record stores (primarily engaged in the retail sale of phonograms)
  • Retail establishments with the independent reference bookstore label or, for those without the label, with a premises freely accessible to the public and a retail activity representing at least 50% turnover
  • Midwives and sick-guards (except in the nursing profession)
  • Doctors and health workers opening a secondary office in a medical desert or in a town of less than 2000 inhabitants
  • Sportsmen and women for sport only
  • Some press activities, such as specialist press broadcasters
  • HLM organisations and owners or tenants renting or subletting a part of their personal dwelling on an occasional basis at a reasonable price (or furnished, provided that the dwelling is the subtenant's principal residence)
  • Operators of classified tourist furniture or bed and breakfast (unless the municipality decides otherwise), provided that these premises are part of their personal dwelling (main or secondary residence outside the rental periods) and do not constitute the principal or secondary dwelling of the tenant
  • Companies for their biogas, electricity and heat production through methanisation
  • Social activities (except mutual societies, their unions, and welfare institutions)
  • Municipal Credit Cards

The company may also benefit from an exemption from EFC when creating or the extension of an establishment from January 2021.

This exemption shall be for a period of 3 years from the year following that of the establishment of the establishment or the 2nd year following that in which the extension of the establishment took place.

Exemption for the establishment or extension of an establishment shall be granted after the deliberation of the public authorities or public institutions of intercommunal cooperation with their own taxation on which the establishment depends. The application for exemption must be submitted to the tax office for which the establishment is responsible (for each establishment). This request must be made before 1to the year following the establishment or extension of the establishment. If this period is not respected, the exemption shall not be granted for the year concerned.

Temporary Exemption

The following persons and organisations may be granted temporary exemption from EFC when they meet certain conditions:

  • Lawyers who have completed the course of theoretical and practical training of at least 18 months, certified by the Certificate of Fitness for the Profession of Lawyer (CAPA), and are engaged in their activities independently, either individually or in groups
  • new companies
  • Companies in regional aid areas
  • Companies in small and medium-sized company investment aid zones
  • Companies in rural revitalisation areas
  • Sensitive urban areas (SUZs) or priority areas of city policy (QPV)
  • First generation urban free zones
  • Second generation urban free zones
  • Urban Free Zones - Third Generation Entrepreneur Territories
  • Doctors, paramedics and veterinarians
  • Innovative young companies and young university companies (JEIU)
  • Companies in Corsica
  • Companies in the pools to be revitalised (BER)
  • Companies in defence restructuring zones (ZRD)
  • Companies in the ZFAs in Guadeloupe, French Guiana, Martinique, La Réunion or Mayotte
  • Companies in urban basins to be dynamised (BUD) between 1to January 2018 and December 31, 2020 that are exempt from income or business tax
  • Companies in neighbouring municipalities BUD between 1to January 2019 and December 31, 2020 that are exempt from income or business tax

The application for temporary exemption of the CFE is made using the form cerfa n°10694. It is to be sent to the tax department of the companies on which the company depends.

Temporary Exemption from company Assessment (CFE)

Who shall I contact

Trade unions

Trade unions are not exempt from CFE for their activities related to the study and defence of the rights and interests of their members.

The CFE rate is fixed by the municipality or theEPCI: titleContent in the territory of which the debtor has taxable property.

The EFC is calculated on the rental value of the property subject to the property tax that the company used for its professional activity in year N-2.

Example :

For the contribution due in 2019, the property used in 2017 is taken into account.

The rental value of business premises is determined by a fee schedule in which the premises for business or commercial use are classified according to their physical characteristics or use.

For example, large stores, sales locations, storage locations.

So the back of a commercial space, used for storing merchandise, doesn't have the same value as the main part dedicated to welcoming customers.

The determination of this value generally takes into account the average of the rental prices during a given period.

The rental value of industrial buildings and land is determined by a method called accounting based on the cost of capital assets (land, land, buildings, land installations).

However, since 2020, when the value of technical installations, equipment and tools in buildings or on land and intended for the activity does not exceed an amount of €500 000, these buildings and land are not of an industrial character. Their rental value is then determined as that of professional premises.

Reduction of tax base

For the calculation of the EFC, the land bases of industrial establishments are reduced by 30%.

The tax base is also reduced in other cases, including:

  • From 50% for new companies, the year following the year of creation
  • In proportion to the downtime for certain seasonal activities (restaurants, cafes, for example)
  • From 75% for a craftsman who employs 1 employee, 50% for 2 employees 25% for 3 employees (excluding apprentices), if the remuneration of the work (profit, wages paid and social contributions) represents more than 50% total turnover
  • In case of implantation in Corsica (reduction of 25% on the share received for the benefit of municipalities or groups of municipalities with their own taxation)

Minimum contribution

Where the rental value is very low, a minimum flat-rate contribution is made from a base, the amount of which is fixed by the decision of the municipality or the EPCI. The scale of this lump sum contribution is updated annually.

This amount must be within a range that varies depending on the amount of revenue or duty-free revenue the company earned in year N-2.

Minimum CFE Base Scale Based on Revenue or Revenue

Revenue or revenue

Minimum Base (2020 CFE)

Up to €10 000

Between €224 and €534

Between €10,001 and €32,600

Between €224 and €1067

Between €32,601 and €100 000

Between €224 and €2242

Between €100,001 and €250 000

Between €224 and €3,738

Between €250,001 and €500 000

Between €224 and €5339

From €500,001

Between €224 and €6,942

Businesses and individuals who are required to pay the EFC are not required to report their tax bases annually to this assessment.

However, a 1447-M declaration must be filed before 2e working day 1to May by the company (at the service of the taxes of the companies on which it depends) being in one of the following situations:

  • It applies for an exemption (land use planning, companies of live or cinematographic shows, GAME/JEI, LIR Label or competitiveness cluster, for example)
  • It wishes to report a change in the consistency or surface area of goods subject to the CFE/IFER:
    • Increase or decrease in space
    • Change in the number of employees (tax credit, artisan reduction...)
    • Variation of tax element (power or number of facilities)
    • Exceeding Threshold €100 000 (bare hire)
    • Termination or closure of installation or establishment

Change Return for company Property Assessment (EFC) and Flat Tax on Network companies

Change Return for company Property Assessment (EFC) and Flat Tax on Network companies

Who shall I contact

An institution that has to pay the CFE no longer receives tax notices and advance notices by mail. He should consult the online tax account.

Payment of the EFC is made in 2 Slices.

One deposit equal to 50% of the amount of EFC assessed for the previous year must be paid before June 15 of the current year.

The institution shall not pay a deposit if the amount of the EFC was less than €3,000.

The balance of the CFE must be paid by 15 December of each year, net of any deposit paid. Therefore, the full amount of the EFC must be paid if a deposit has not been paid.

FYI  

where the deadline for payment or collection of the EFC coincides with a Saturday, a Sunday or a holiday, the deadline is extended to 1toworking day next.

The hotel can choose between the following payment methods:

  • Internet payment via online tax account
  • Monthly fee (membership available until 30 June)
  • Debit at maturity (membership possible until 30 November for payment of balance)

The institution may obtain a reduction in the EFC due if it plans to cease operations in the course of the year or if its tax base is likely to be reduced by at least 25% compared to the previous year. In order to obtain this reduction, a written, dated and signed declaration must be submitted to the public accountant responsible for the collection of the EFC, at least 15 days before the date of maturity of the deposit.

Warning  

a company who paid an annual contribution in excess of €3,000 and that is not monthly must pay a deposit before 15 June. This deposit is equivalent to 50% of the amount received in the previous year.

New company

The EFC must be paid by businesses and individuals who regularly exercise self-employed. This is regardless of their legal status, the nature of their activity, their taxation regime and their nationality.

Please note

companies with a turnover or revenue of less than or equal to €5 000 are exempt from CFE.

The activity taxable to the CFE must be carried out in France and satisfy the following 3 conditions:

  • It must be of a habitual nature
  • It must be exercised in a professional capacity
  • It shall not give rise to the payment of a salary

Rental and subletting of bare premises for residential use and furnished rentals are covered by the CFE.

However, activities relating to the rental or subletting of bare premises for residential use are not subject to the CFE when they generate gross tax-free revenue or a turnover of less than €100 000.

The SBB does not also cover the furnished rental of certain units which form part of the owner's main residence.

Built and non-built properties fall within the scope of the EFC, except for permanent or temporary exemptions granted to certain companies.

CFE exemptions can be permanent or temporary.

Permanent Exemption

The following organisations and individuals are permanently and automatically exempt from EFC, subject to a number of conditions:

  • Territorial communities, public institutions and government agencies
  • Major seaports, autonomous ports, ports managed by territorial authorities, public institutions or mixed economy businesses (except pleasure ports)
  • Agricultural operators, certain employers' groups and certain GIE: titleContent
  • Some agricultural cooperatives and their unions
  • Artisans working either for individuals with materials provided or on their behalf with materials belonging to them, whether or not they have a sign or a shop, when they use only the apprentice(s) contest aged up to 20 years at the beginning of the apprenticeship
  • Taxi or ambulance drivers, owners or tenants of 1 or 2 cars, of 7 places maximum (excluding the driver's seat), whether they drive or manage themselves, provided that the 2 cars are not in service at the same time and that they respect the regulatory tariffs
  • Cooperatives and unions of cooperative businesses of craftsmen, cooperative businesses and unions of cooperative businesses of boatmen, maritime cooperative businesses
  • Some fishermen, artisanal fishing businesses and marine registrants
  • Cooperative and Participatory businesses (Scop)
  • Independent Home Vendors (VDIs), for their total gross remuneration less than €6,787
  • Private establishments of first and second degree under contract with the State and of higher education under contract or recognised as being of public interest
  • Faculty of Letters, Science and Accreditation and primary teachers who provide their instruction personally, either at their home or at the student's home, or in a non-teaching and non-special accommodation space
  • Painters, sculptors, engravers and draughtsmen considered artists and selling only the product of their art
  • Photographers authors, for their activity related to the making of photographs and the assignment of their works of art or copyright
  • Authors, composers, choreographers, copyrighted translators, and certain categories of entertainment entrepreneurs (live shows)
  • Lyrical and dramatic artists
  • Independent record stores (primarily engaged in the retail sale of phonograms)
  • Retail establishments with the independent reference bookstore label or, for those without the label, with a premises freely accessible to the public and a retail activity representing at least 50% turnover
  • Midwives and sick-guards (except in the nursing profession)
  • Doctors and health workers opening a secondary office in a medical desert or in a town of less than 2000 inhabitants
  • Sportsmen and women for sport only
  • Certain press activities, such as specialist press broadcasters, are exempt in their own right
  • HLM organisations and owners or tenants renting or subletting a part of their personal dwelling on an occasional basis at a reasonable price (or furnished, provided that the dwelling is the subtenant's principal residence)
  • Operators of classified tourist furniture or bed and breakfast (unless the municipality decides otherwise), provided that these premises are part of their personal dwelling (main or secondary residence outside the rental periods) and do not constitute the principal or secondary dwelling of the tenant
  • Companies for their biogas, electricity and heat production through methanisation
  • Social activities (except mutual societies, their unions, and welfare institutions)
  • Municipal Credit Cards

Temporary Exemption

The following persons and organisations may be granted temporary exemption from EFC when they meet certain conditions:

  • Lawyers who have completed the course of theoretical and practical training of at least 18 months, certified by the Certificate of Fitness for the Profession of Lawyer (CAPA), and are engaged in their activities independently, either individually or in groups
  • new companies
  • Companies in regional aid areas
  • Companies in small and medium-sized company investment aid zones
  • Companies in rural revitalisation areas
  • Sensitive urban areas (SUZs) or priority areas of city policy (QPV)
  • First generation urban free zones
  • Second generation urban free zones
  • Urban Free Zones - Third Generation Entrepreneur Territories
  • Doctors, paramedics and veterinarians
  • Innovative young companies and young university companies (JEIU)
  • Companies in Corsica
  • Companies in the pools to be revitalised (BER)
  • Companies in defence restructuring zones (ZRD)
  • Companies in the ZFAs in Guadeloupe, French Guiana, Martinique, La Réunion or Mayotte
  • Companies in urban basins to be dynamised (BUD) between 1to January 2018 and December 31, 2020 that are exempt from income or business tax
  • Companies created in neighbouring communes at BUD between 1to January 2019 and December 31, 2020 that are exempt from income or business tax

The application for temporary exemption of the CFE is made using the form cerfa n°10694. It is to be sent to the tax department of the companies whose company depends.

Temporary Exemption from company Assessment (CFE)

Who shall I contact

Trade unions

Trade unions are no longer exempt from CFE for their activities related to the study and defence of the rights and interests of their members.

The CFE rate is fixed by the municipality or theEPCI: titleContent in the territory of which the debtor has taxable property.

The EFC is calculated on the rental value of the real estate subject to the property tax that the company used for its professional activity in year N-2. For example, for the contribution due in 2019, the property used in 2017 is taken into account.

The rental value of business premises is determined by a fee schedule in which the premises for business or commercial use are classified according to their physical characteristics or use.

For example, large stores, sales locations, storage locations.

So the back of a commercial space, used for storing merchandise, doesn't have the same value as the main part dedicated to welcoming customers.

The determination of this value generally takes into account the average of the rental prices during a given period.

The rental value of industrial buildings and land is determined by a method called accounting based on the cost of capital assets (land, land, buildings, land installations).

However, from 2020, when the value of technical installations, equipment and tools present in buildings or on land and intended for the activity does not exceed an amount of €500 000, these buildings and land are not of an industrial character. Their rental value will then be determined as that of professional premises.

Reduction of tax base

For the calculation of the EFC, the land bases of industrial establishments are reduced by 30%.

The tax base is also reduced in other cases, including:

  • From 50% for new companies, the year following the year of creation
  • In proportion to the downtime for certain seasonal activities (restaurants, cafes, for example)
  • From 75% for a craftsman who employs 1 employee, 50% for 2 employees 25% for 3 employees (excluding apprentices), if the remuneration of the work (profit, wages paid and social contributions) represents more than 50% total turnover
  • In case of implantation in Corsica (reduction of 25% on the share received for the benefit of municipalities or groups of municipalities with their own taxation)

Minimum contribution

Where the rental value is very low, a minimum flat-rate contribution is made from a base, the amount of which is fixed by the decision of the municipality or the EPCI. The scale of this lump sum contribution is updated annually.

This amount must be within a range that varies depending on the company's turnover or duty-free receipts.

Minimum CFE Base Scale Based on Revenue or Revenue

Revenue or revenue

Minimum Base (2020 CFE)

Up to €10 000

Between €224 and €534

Between €10,001 and €32,600

Between €224 and €1067

Between €32,601 and €100 000

Between €224 and €2242

Between €100,001 and €250 000

Between €224 and €3,738

Between €250,001 and €500 000

Between €224 and €5339

From €500,001

Between €224 and €6,942

Businesses and individuals who are required to pay the EFC are not required to report their tax bases annually to this assessment.

However, a 1447-M declaration must be filed before 2e working day 1to May by a company (serving the taxes of the companies on which it depends) which is in one of the following situations:

  • It applies for an exemption (land use planning, companies of live or cinematographic shows, GAME/JEI, LIR Label or competitiveness cluster, for example)
  • It wishes to report a change in the consistency or surface area of goods subject to the CFE/IFER:
    • Increase or decrease in space
    • Change in the number of employees (tax credit, artisan reduction...)
    • Variation of tax element (power or number of facilities)
    • Exceeding Threshold €100 000 (bare hire)
    • Termination or closure of installation or establishment

Change Return for company Property Assessment (EFC) and Flat Tax on Network companies

Who shall I contact

The EFC is due by the companies which carry on their business at 1to In January of the year, new companies (including new micro-entrepreneurs) are not subject to the CFE in the year of their creation.

Then, on the 1re as a tax year, they receive a 50-50 reduction in the tax base.

The creator or company taker must file the return 1447-C-SD with the tax office of the companies on whose company depends. He must do it before 31 December of the year of creation or resumption so that the elements of taxation for the following year are established.

This applies to the following situations:

  • Establishment or takeover of an establishment during the year (except in the case of a total transfer of the professional activity in the same municipality)
  • Change of operator in year or on 1to January of the following year

If the assignment of the company takes place in the course of the year, the transferor must pay the WFA for the whole year. He must declare the change of operator before December 31.

If the change takes effect on 1to in january of the following year, the new operator is taxed on the basis of the activity of his predecessor. The return must be made before December 31 of the year of transfer.

Initial Statement for company Property Assessment (CFE) and Flat Tax on Network companies (IFER)

Who shall I contact

Institutions that are required to pay the CFE no longer receive tax notices and deposit notices by mail. They should consult them on the online tax account.

Payment of the EFC is made in 2 instalments.

One deposit equal to 50% of the amount of EFC assessed for the previous year must be paid before June 15 of the current year.

The taxpayer does not have to pay a deposit if the amount of the EFC was less than €3,000.

The balance of the CFE must be paid by 15 December of each year, net of any deposit paid. Therefore, the full amount of the EFC must be paid on this date if a deposit has not been paid.

The taxpayer has the option of:

  • Internet payment through online tax account
  • The monthly fee (membership available until 30 June)
  • Debit at maturity (membership possible until 30 November for payment of balance)

The taxpayer may receive a reduction in the EFC due if the taxpayer plans to cease operations in the year or if the taxpayer's tax base is likely to be reduced by at least 25% compared to the previous year. In order to obtain this reduction, a written, dated and signed declaration must be submitted to the public accountant responsible for the collection of the EFC, at least 15 days before the date of maturity of the deposit.

FYI  

where the deadline for payment or collection of the EFC coincides with a Saturday, a Sunday or a holiday, the deadline is extended to 1toworking day next.

To small and medium-sized and micro-entreprises, do you have a business project, a difficulty or a question ?

Quick and simple public service: you will be contacted over the phone by one of our experts.

Speak with an advisor on Place des Entreprises