C. CORPORATE LAND PROPERTY TAX, A TAX THAT APPLIES TO ALL PROFESSIONAL WORKERS
According to the hearings organised by the Working Group, the greatest astonishmentof online platform users redefined as self-employed workers relates to the enterprises corporate land contribution ( cotisation foncière des entreprises , CFE) .
Under the terms of Article 1447 of the General Tax Code, the CFE is due each year by businesses natural persons or legal entities, companies without a legal personality or trustees who carry out a self-employed professional activity .
The CFE is therefore due, regardless of the legal status of the person liable (company, foundation, micro-entrepreneur, etc.) and the nature of his activity , including if he carries it out as a secondary activity and via an online platform.
Taxpayers, if they do not have professional premises, are thus liable to pay the CFE on the base of their personal residence . In accordance with Article 1647 of the General Tax Code, they are subject to a minimum contribution if their turnover is less than or equal to EUR 10,000. The minimum basis of the CFE is between EUR 214 and EUR 510, depending on the levels voted by the local authorities in the commune in which they are based, which is equivalent to a minimum contribution of EUR 55 to EUR 132 33 ( * ) .
However, as for income tax and social security contributions, the concept of a activity does not meet any clear and objective criteria , but depends on complex case-law and doctrine and differs from the one which applies to income tax. The Bulletin Officiel des Finances Publiques 34 ( * ) (BOFiP) specifies only that this condition is deemed to be satisfied when the actions which characterise the activity are carried out repetitively ” .
The situation is further complicated by multiple exemptions from the CFE , which result from a vision of the economy that is out of phase with that of the digital platforms, but which may be applied. For example:
- the exemption of independent craft workers : 1° of Article 1452 of the General Tax Code provides that workers who work either as contractors for private individuals, either for themselves and with materials belonging to them, whether or not they have premises or a shop, when they use only the assistance of one or more apprentices aged twenty years or under at the start of the apprenticeship and who have an apprenticeship contract are exempt;
- the exemption of some teachers , 3° of Article 1460 of the General Tax Code distinguishing for example mathematics courses from kitchen or sewing courses.
D. SOCIAL LEVIES, THE FORGOTTEN PART OF THE DEBATE?
The social levies include the five following elements : the “ Contribution sociale généralisée ” (CSG), the “ Contribution pour le remboursement de la dette sociale ” (CRDS), the “ prélèvement social ”, the “ contribution additionnelle ” and the “ prélèvement de solidarité ”.
Unlike social contributions, due by professional affiliated to a Social security regime (see above), social levies are considered universal taxes, which do not give an entitlement to any specific social benefit 35 ( * ) .
Even when they are not considered to be self-employed workers and affiliated as such to the Social security, and even when they are not liable to pay income tax , users of online platforms are as any taxpayer subject to social levies on their income, at the rate of:
- 8% on income from activities : DIY, babysitting, cooking, etc.
- 15.5% on income from assets : this means that a private individual who occasionally rents his drill or his bike without exceeding the EUR 7,846 threshold could in principle be liable to pay social levies on these elements of his assets, from the first euro. Beyond EUR 7,846, he is regarded as a self-employed worker, and therefore affiliated as such to the Social security and liable to pay social contributions on income from activities.
* 33 With application of the average rate of CFE of the municipal sector, i.e. 25.95% in 2015. Source: Local finance observatory.
* 34 BOI-IF-CFE-10-20-20-10-20150902.
* 35 Decision No. 90-285 DC of the Constitutional Council of 28 December 1990 on the Generalised social contribution.