It is the bill for your social contributions. They are levied on your French income, so if you've just started declaring it, then that's how it's arisen. Any UK earned income remains exempt from social charges as you hold an E121.
The form shows the breakdown (and percentages) of the charge allocated between CSG, CRDS and PS.
Sunday Driver wrote: It is the bill for your social contributions. They are levied on your French income, so if you've just started declaring it, then that's how it's arisen. Any UK earned income remains exempt from social charges as you hold an E121.
I'm a bit puzzled here! I'm assuming the OP is resident, since a tax return has been made. If so, surely one's worldwide income is taxed, and it's that figure on which the Contribtions Sociales are calculated?
We have certainly been charged on our UK income, and come to that on my wife's UK state pension, so there's a foul -up there to start with! We don't have any income in France - It all comes from the UK.
Peter
You are correct when you say that social charges are due on worldwide income. However, foreign earnings and pensions are exempt if you are not 'a la charge' of an obligatory health insurance scheme - for example, if you have an E-form, then your health insurance costs are met by the UK.
If your wife is in receipt of her old age pension, then you should be registered for heathcare under her E121 and on that basis, you will be exempt from social charges on your foreign earnings.
Savings/investment interest does not benefit from this exemption and remains liable to the social charge.
REVISE AFTER SD CORRECTION
1) There is a "social" charge (CRDS) calculated on your total income "earned" and un-earned, (it is about 0.5%) but as SD says you are exempt from this charge whilst you have an E form.
2 There are also social charges which are levied and billed separately to your income tax, these are CSG, CRDS and PSCS contributions which are based on your declared unearned income, they total around 11% of the total unearned income . In France unearned income embraces savings interest, rent income etc.
3) There are payments that are made to the French health care system which are about 8% of your revenue declared. These are normally paid quarterly to URSSAF.
Also see http://www.completefrance.com/cs/forums/924927/ShowPost.aspx where I got it right!!
Why not post a sensible answer, people will appreciate it more
Just to clarify this point...
You do not pay any social charges with your income tax - your tax avis does not include them. They are all billed separately - that's what the brown Avis d'imposition Contributions Sociales is for - and they are payable later in the year than your income tax.
This is how your total income is split for the calculation:
Foreign earnings and pensions attract CRDS at 0,5% - except for holders of E-forms or those who will be subscribing to private healthcare insurance under the new ruling.
All unearned income attracts CSG at 8,2%, CRDS at 0,5% and PS at 2,3% = 11%.
The brown avis also shows the amount of CSG which is deductable from your next years tax declaration.
This is something which always causes problems - even more so on certain other forums than here.
I think the difficulty is that the French authorities have tried to disguise a particularly iniquitous levy, which is effectively an additional universal income tax, as a 'social contribution'. Yes, the basic reason for having it is to counter the overspending on social services, particularly health, so there is a connection. But the basic point is that this is a levy on income and profits imposed on all French residents, whether or not they have any present or future rights to receive benefits.
The only reason those who receive retirement pensions from outside France are able to escape it is because the EU ruled that France could not impose this levy on such income. So perhaps there is a glimmer of encouragement in that precedent for those campaigning to remain within the CMU system.
aj
The exemption from CRDS on UK earnings/pension would have applied from the date your CPAM reaffilliated you under your E121 until 31 December 2006. For the purpose of the calculation, the CRDS charge is derived from the figure you enter in box TL on your income tax declaration, so you should have only entered your pre E121 earnings there.
If you didn't omit the exempted income, then you would have to contact your tax office and ask them to recalculate the figures for 2006. That said, at 0,5%, the overpayment won't amount to much....
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