Is a micro-entrepreneur subject to company property tax?
Verified 05 August 2022 - Legal and Administrative Information Directorate (Prime Minister), Ministry of Finance
Does every micro-entrepreneur have to pay the CFE?
A micro-entrepreneur, whether he owns a place or not, has to pay the companies' property levy (CFE) under the same conditions as any company creator.
However, you are exempt from CFE automatically if you are in any of the following situations:
- Artisan
- Farmer
- Fisherman
- Artist (painter, sculptor, engraver, draftsman, photographer, author, composer, lyric and dramatic artist)
- Athlete
- Independent Home Seller
- Owner who rents a furnished part of his home
FYI
if you have no premises and your annual turnover does not exceed €5,000, you are exempt from minimum contribution.
How do I apply for an exemption from CFE for the first year of operation?
You are exempt from payment of the EWC in the first year of operation, regardless of when the creation exercise is opened. You don't have to pay.
In order to benefit from it, you must file a 1447-C-SD return (called the initial return) with the companies tax office before 31 December of the year in which the activity began.
Initial Declaration 1447-C-SD (CFE)
Who shall I contact
Please note
the year following the year of creation (1era tax year), you benefit from a reduction of 50% from your tax base to the CFE.
How is the CFE calculated?
The CFE is calculated differently depending on whether you have a room or not (or land) for the exercise of your activity.
You have a premises or land
The CFE is calculated against the rental value of immovable property subject to the property tax that you used for your professional activity during the penultimate year (year N-2).
A variable rate depending on the municipality (where the company has its principal place of business) is applied to the rental value to determine the amount of the FTC.
The amount of the tax must be paid by December 15 every year.
Example :
To calculate the 2022 EFC, you must take into account the commercial premises used in 2020 for the purposes of your business.
However, if the rental value of the premises is too low, the company must pay a minimum contribution. In this case, the amount of the CFE shall be determined based on turnover carried out over a period of 12 months (in year N-2).
In each tranche, the amount of CFE varies according to the municipality in which the company is established for tax purposes. In other words, for the same turnover, 2 companies located in 2 different municipalities will not pay the same amount of CFE.
Turnover made of N-2 | Minimum CFE due in 2022 (depending on the municipality) |
|---|---|
Enter €5,001 and €10,000 | Enter €227 and €542 |
Enter €10,001 and €32,600 | Enter €227 and €1,083 |
Enter €32,601 and €100,000 | Enter €227 and €2,276 |
Enter €100,001 and €250,000 | Enter €227 and €3,794 |
Enter €250,001 and €500,000 | Enter €227 and €5,419 |
From €500,001 | Enter €227 and €7,046 |
You practice from home or at your clients' home
If you do not have any premises and do business at home (or your customers), you still have to pay a minimum contribution. In this case, the amount of the CFE shall be determined based on turnover carried out over a period of 12 months (in year N-2).
In each tranche, the amount of CFE varies according to the municipality in which the company is domiciled. In other words, for the same turnover, 2 companies located in 2 different municipalities will not pay the same amount of CFE.
Please note
the place of domicile may match your dwelling place or at another place under a contract of commercial domiciliation.
Turnover made of N-2 | Minimum CFE due in 2022 (depending on the municipality) |
|---|---|
Enter €5,001 and €10,000 | Enter €227 and €542 |
Enter €10,001 and €32,600 | Enter €227 and €1,083 |
Enter €32,601 and €100,000 | Enter €227 and €2,276 |
Enter €100,001 and €250,000 | Enter €227 and €3,794 |
Enter €250,001 and €500,000 | Enter €227 and €5,419 |
From €500,001 | Enter €227 and €7,046 |
FYI
You are exempt from minimum contributions if your annual turnover does not exceed €5,000. If your sales amount has been calculated over a period of less than 12 months, this amount will be recalculated over 12 months.
FAQ
General Directorate of Public Finance