June 15, 2023 is an important date in terms of the territorial economic contribution (Contribution Economique Territoriale - CET), for companies liable for an advance payment of the Cotisation Foncière des Entreprises (CFE) and a first advance payment of the Contribution sur la Valeur Ajoutée des Entreprises (CVAE).
Who is liable?
CFE and CVAE are the two components of the territorial economic contribution (CET).
The CFE is a local tax payable by companies and sole proprietors carrying on business in France on a regular, non-salaried basis. The amount of the CFE is calculated on the basis of the rental value of property subject to property tax used by the company in the course of its business for the year N-2.
The CVAE is a local tax payable by companies that meet the following two conditions:
- If you carry on an activity that is subject to CFE tax, you must be a self-employed professional working on a regular basis in France;
- Annual pre-tax sales in excess of 500,000 euros.
Companies with sales in excess of 152,500 euros are required to file a declaration of value added and number of employees, even if they do not ultimately pay this tax. The amount of CVAE is calculated on the basis of two factors: the taxable added value and the CVAE rate.
These taxes can be paid via a pro account for VSEs, SMEs, ETIs and startups, on schedule.
Payment of CFE deposit
Companies that have not opted for the monthly levy and whose tax for 2022 was at least equal to 3,000 euros must pay the CFE down-payment. The amount of the advance payment generally represents 50% of this contribution.
You can pay this deposit by going to your impots.gouv.fr professional space, and clicking on the "pay" button above the deposit notice. The bank account used for payment is the one previously declared by the user. Payment must be made no later than June 15, 2023.
Payment of CVAE advance
Companies whose 2022 CVAE exceeded 1,500 euros must pay the advance payment no later than June 15, 2023. The amount of the advance payment is in principle equal to 50% of the assessment due for 2023. This is determined on the basis of the value added reported in the last income tax return.
The second installment of CVAE is due no later than September 15, 2023.
In the event of an overpayment of advance payments, these are refunded by the tax authorities in the form of a deduction from other direct taxes due.