The Social Security Financing Bill (PLFSS) for 2023, amended by the Senate and registered with the Presidency of the National Assembly on 15 November 2022, provides for the exemption of all non-residents from the payment of the CSG and CRDS on assets' income received in France, provided that they are not subject to a compulsory French health insurance scheme.
This measure, presented by way of an amendment by deputies from "Renaissance" group (political party of Emmanuel Macron), was not included in the PLFSS adopted* at the first reading by the National Assembly.
A new amendment, this time proposed by senators from "Les Républicains" group, adopted at the first reading by the Senate, reintroduced this measure in the PLFSS.
Since 2012, assets' income received in France by non-residents has been subject to social security levies, the overall rate of which has been 17.2% since 2017.
This tax liability was deemed incompatible with the principle of a single social security legislation as provided by the EC Regulation 883/2004 on the coordination of social security systems.
The CJEU thus considered that persons affiliated to a social security scheme of an EU, EEA member State or Switzerland cannot be subject to social security deductions on their assets' income if they are not subject to a compulsory French health insurance scheme.
In order to comply with the EU law, the Social Security Financing Act for 2019 exempted non-residents affiliated to a social security system of the European Union, the European Economic Area and Switzerland from CSG and CRDS on their assets' income.
Since the adoption of this text, "only" non-residents living in another State remain subject to the CSG and CRDS on their assets' income received in France, despite the fact that they do not receive any social benefits in return.
It is in this context, out of concern for fairness, that the "Renaissance" deputies and then the "Les Républicains" senators wish to introduce into the social security financing bill a measure aimed at generalising the CSG-CRDS exemption for all non-residents by making only those taxpayers "who are both liable for income tax in France, due to the origin of some of their income, and simultaneously subject to a compulsory French health insurance scheme" subject to these levies.
In its version modified by the Senate and registered at the Presidency of the National Assembly on 15 November 2022, this measure is codified in Article 7 octies of the PLFSS 2023.
To be continued...
* For the record, the Social Security Financing Bill for 2023 was considered adopted by the National Assembly at the first reading in application of Article 49, paragraph 3, of the Constitution: in other words, through a special procedure that does not allow MPs to amend the bill presented by the government.
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