Small Business Rates 2023
3rd Nov 2023
Small business owners and landlords will be receiving their annual rates bill this month.
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Small Business Rates 2023
3rd Nov 2023
Small business owners and landlords will be receiving their annual rates bill this month.
Most business owners and many landlords of furnished accommodation in France are liable for local business rates, although there are important exemptions in place (see below).
The letting of unfurnished accommodation is not considered to be a professional activity, so is exempt.
The rates are called the Cotisation Foncière des Entreprises (CFE).
The amount payable is determined from the value of the real estate you use to run the business, or the rent you pay if you are a commercial tenant.
Even though you may work from home you are still liable for the tax on the basis of the work/office space you occupy, which may be minimal if you only work from a desk, eg 4m2.
The level of the rates payable is determined locally, but within parameters set by central government, revised upwards each year in line with inflation.
If the rateable value of the space used is small, most smaller councils set the minimum rate towards the lower end of each range. This is particularly the case if you work from an office in your home, when only the lowest local rate is likely to apply. In relation to furnished accommodation, it the the rateable value of the property that is used to determine the amount payable.
There are six rate bands, depending on the turnover of the business, as follows:
| Small Business Rates 2023 | ||
| Turnover | Minimum Rates | |
| <€5,000 | €0 | |
| Between €5,000 - €10,000 | €227-€565 | |
| Between €10,000 - €32,600 | €227-€1,130 | |
| Between €32,600 - €100,000 | €227-€2,374 | |
| Between €100,000 - €250,000 | €227-€3,937 | |
| Between €250,000 - €500,000 | €227-€5,652 | |
The reference year used for determining the turnover figure is two years prior to the year of imposition, so for 2023 it will be based on your turnover for 2021.
Exemptions and Relief
There is a system of rates relief in place, some permanent and some temporary, and others at the discretion of the local councils. You can read about those exemptions and reliefs for business in our Guide to Starting a Business in France and for landlords at Local Rates on Rental Properties.
Payment
The tax is collected by the national tax authority, and bills will go out this month. They also collect a small management charge, which is added to the rates payable. The bill also includes a charge for the local chambers of commerce.
This year the tax is payable by 15th December, and can also be paid monthly by prior registration, although it is too late to do so this year if you have not already taken the option.
Newly registered businesses and landlords should normally receive a form to complete to set up their tax liability.
To pay on-line this year you need to create an account on the website of impots.gouv.fr, in the section 'Votre espace professional'.