business tax (Cotisation foncière des entreprises)

business tax (Cotisation foncière des entreprises)
Name	Cotisation foncière des entreprises
Country	France
Type	Local business tax
Introduced	2010s
Replaced	Taxe professionnelle

business tax (Cotisation foncière des entreprises) is a local tax levied on the occupation of real property by businesses in France. It forms part of the Fiscalité en France framework and interacts with national levies such as the Impôt sur le revenu and Impôt sur les sociétés, while affecting stakeholders including the Assemblée nationale (France), Conseil constitutionnel, and municipal councils like those of Paris and Lyon. The tax influences decisions by entities ranging from multinational corporations such as TotalEnergies and Renault to small firms represented by associations like the Mouvement des Entreprises de France and the Confédération générale des petites et moyennes entreprises.

Overview

The Cotisation foncière des entreprises (CFE) originated as part of reforms following debates in the Assemblée nationale (France) and measures implemented by administrations under presidents from Nicolas Sarkozy to Emmanuel Macron. It replaced elements of the former Taxe professionnelle and functions alongside the Cotisation sur la valeur ajoutée des entreprises and Contribution économique territoriale. Municipalities such as Marseille and Bordeaux set local rates within parameters established by the Code général des impôts and overseen by agents from institutions like the Direction générale des finances publiques and auditors from bodies similar to the Cour des comptes.

Scope and Eligibility

CFE applies to natural persons and legal entities carrying out professional activities in communes including Nice and Strasbourg, with specific rules for entities headquartered in overseas collectivities such as Guadeloupe and Réunion. Exemptions and special statuses involve organisations like Église catholique en France and entities under statutes such as those of the Croix-Rouge française and cooperatives affiliated with Confédération générale du travail. Eligibility criteria reference registrations at chambers such as the Chambre de commerce et d'industrie de Paris and filings with registries like the Registre du commerce et des sociétés and the Répertoire des métiers.

Calculation and Rates

Calculation of the CFE combines a base determined by the rental value of premises—assessed using rules influenced by precedents from cases before the Conseil d'État—and a rate voted by local councils including those of Toulouse and Nantes. The base links to valuations akin to property assessments used by institutions like the Direction générale des finances publiques; municipalities such as Grenoble may apply majoration comparable to surcharges seen in debates involving Syndicat des transports d'Île-de-France decisions. Rates vary across departments like Bouches-du-Rhône and Nord (département), and relief interacts with national measures enacted by cabinets led by François Fillon or Jean Castex.

Exemptions and Reductions

Exemptions include start-ups benefiting from policies promoted during administrations associated with figures like Laurent Fabius and Édouard Philippe, and reductions following directives affecting sectors represented by Fédération Française du Bâtiment or Union des industries et métiers de la métallurgie. Specific exemptions have been granted historically to entities comparable to Pôle emploi and to agricultural operators under frameworks linked to the Ministère de l'Agriculture et de l'Alimentation. Local councils in territories such as Corse and Hauts-de-Seine may adopt temporary abatements mirroring relief tools deployed during crises like the Crise financière de 2007–2008 and the Pandémie de Covid-19.

Administration and Payment

Administration is handled by tax services of the Direction générale des finances publiques with declarations filed electronically through portals influenced by digital initiatives like those of Agence pour l'informatique financière de l'État. Payments follow schedules consistent with procedures used for Taxe foncière sur les propriétés bâties and intermingle with obligations to institutions such as the URSSAF for social contributions. Disputes over assessments are adjudicated through administrative courts including the Tribunal administratif de Paris and appeals can reach the Conseil d'État.

Impact and Criticism

Critics from organizations like the Cour des comptes and trade groups including the MEDEF argue that CFE influences site selection decisions involving multinational firms such as Airbus and L'Oréal, affects competitiveness relative to jurisdictions like Luxembourg and Belgium, and imposes compliance costs noted by studies from research centers associated with INSEE and OECD. Defenders within municipal administrations cite revenues used for services provided in cities such as Reims and Le Havre and reference fiscal autonomy debates involving the Sénat (France) and intercommunal structures like Métropole du Grand Paris. Litigation over valuation methods has produced rulings by the Conseil constitutionnel and Conseil d'État shaping subsequent policy.

Historical Development

The CFE emerged from reforms following critiques of the Taxe professionnelle in the late 2000s, with legislative milestones in sessions of the Assemblée nationale (France) and enactments under governments led by premiers including François Fillon and Manuel Valls. Implementation was shaped by consultations with organizations such as the Confédération des petites et moyennes entreprises and studies from statistical bodies like INSEE. Subsequent adjustments have occurred across presidential terms of François Hollande and Emmanuel Macron, and debates over territorial fiscal reform have involved stakeholders from regions such as Normandie and Provence-Alpes-Côte d'Azur.

Category:Taxation in France