Auto-entrepreneur tax vs CFE?
Vanessa
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I have just been reading through the various posts on paying tax at source in France, and the implications on CFE payable: i.e. if you pay tax at source you receive the three year exoneration on CFE. I just wanted to clarify the following points though.
- Tax on turnover, e.g. 1% under the auto-entrepreneur for a chambre d’hote, is a mutually exclusive tax to CFE, where the CFE is based on separate factors to do with your commune, professional use of residence, employees etc?
- Based on the above, if you do not elect to pay tax at source, i.e. the 1% during the year, this does not mean you receive some sort of exemption on the 1% tax itself, it just delays the payment of that until the end of the year, with maximum personal tax payable of 1%? Your point about potentially over-paying tax under the at source option would be the result of deductions for having children in a household etc. which are not calculated until year end - is that right?
- I am currently doing some renovations on my house, with the intention of opening a chambre d’hote around ±Êâ±ç³Ü±ð²õ (ready for summer), and I was going to fill out the auto-entrepreneur forms now to get started, but from reading other bits and pieces in the Forum, I take it if I request the setup before 31 Dec 2010, these next two weeks may be calculated as my first year of °µÍø½ûÇø, in which case any exemptions from CFE for example would be worthless? Given the timeframe I am thinking about, would you suggest that I lodge my application in the new year?
