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Tax break promise for entrepreneurs
The Small Business Minister has sought to calm the anger of auto-entrepreneurs who receive bills based on the value of their home
A THREE-YEAR exemption from the new CFE business tax may be extended to all auto-entrepreneurs.
Small Business Minister Frédéric Lefebvre has said he wants to bring in a legal amendment, after a federation representing people in the simplified business regime criticised the tax, which they said in some communes is a minimum 2,000 euros.
CFE is a replacement for the taxe professionnelle, which was “abolished” with much government fanfare at the start of this year. Bills have been sent out with a deadline of December 15.
People becoming auto-entrepreneurs, a regime dating from last year intended to encourage people to try working for themselves, can be exempt for three years if they opt for a special method of paying income tax.
However those who stayed with the traditional annual declaration are only exempt in the year of creation of their business.
Now Mr Lefebvre says he wants to push through a law changing this. He has already told the National Assembly that auto-entrepreneurs who had no turnover in a given year will also be exempt from the tax.
The federation is pressing for more concessions, notably for the tax to be proportional to turnover.
Many auto-entrepreneurs are employees or retired people doing some part-time work on the side; the CFE could wipe out any profit for many of them or leave them in debt.
The tax is based on the value of the property in which you live to which a rate set by the mairie is applied.
As a result some auto-entrepreneurs have found themselves receiving bills based on the size of their house which bear no resemblance to their turnover or profits.
Photo:Marie-Lan Nguyen