Taxation of non-residents: European Court disagrees with France
On Thursday, 26th February, European Court of Luxembourg pronounced a landmark case which now deprives France of the right to get social security contributions on the property incomes of foreigners.
It concluded that France did not have the right to submit to the Cotisation Sociale Généralisée (CSG) and the Contribution de Remboursement de la Dette Sociale (CRDS) property incomes from non-French residents, as they do not benefit from the French Healthcare system. Contrary to France, these contributions are not seen as taxation for the Court, but as social contributions, since they “present a direct and quite relevant relation with the French Healthcare system, as they directly finance the French Healthcare system or balance its deficits”.
For all non-residents, this landmark case offers the right of the full repayment of the 15.5% of CSG and CRDS debited from 2012, inflated by interests. Now, the government has to define the rule of thumb to get repayment. No legal requirement can be opposed as this legal measure dates from 2012.
Learn more :
On Thursday, 26th of February, the European Court judged against the European law the liability to the Cotisation Sociale Generalisée (CSG) and the Contribution pour le Remboursement de la dette Sociale (CRDS) of the wages earned abroad by non liable people to the French Healthcare system, taking to the same conclusion regarding estate wages earned in France by non-residents. The European Court reminded the case law which specifies that liable people to a social legislation (in their own country) cannot be liable to a second one.
This judgment also entitles to a claim all non-residents concerned by the integral repayment of the 15.5% from CGS and CRDS debited from 2012, inflated by interested. Within the scope of the Court case law, the government now should specify very quickly the rule of thumb to get this repayment. No legal requirement can be opposed as this legal measure dates from 2012. A French deputy for French foreigners asked the government:
- Pierre-Yves Le Borgn’ attracts the minister finance’s attention regarding the consequences of the European Court’s Ruter judgment (C-623/13) of the 26th February 2015. It should conclude the liability to non-residents estate wages to the Cotisation Sociale Généralisée (CSG) and the Contribution pour le Remboursement de la Dette Sociale (CRDS) is against the European Union law. This judgment allows the integral repayment of debited sums. M. Le Borgn’ would like to know the specific terms of repayment from the State for non-residents in order to wait less for it.