Wonder if anyone could help? We filed our tax returns here last year and our earnings are so meagre that we had nothing to pay but last week we received a demand for prelevements sociaux the the tune of 288 euros. Contacted the office des finances publiques through a French speaking friend ( have some french but did not want there to be any difficulty in the understanding) and was told that we had to pay it as it "showed solidarity"
We are both retired with oh being 65 this year. Is this right? as we know of no-one else who is retired -- on almost zero income who is paying this. If we are liable for the payment will we still have to pay it when oh is 65?
Any input would be appreciated
We have paid the said amount as we were told that there would be fines accruing if we did not

Hi Lesley

I found this, with the link to the report below

Those on low incomes (e.g. under E6,965 for a single person and E13,930 for a couple) are exempt from social security contributions and also qualify for free complementary insurance.

EU retirees going to live permanently in France aren't required to contribute to French social security, but must register with their local CPAM (and present forms E106 and E121).

http://www.parisvoice.com/index.php?option=com_content&task=view&id=135&Itemid=28

Hope it's of use.

clare

My mum and dad had to furnish them with an E121 and paid less charges

Have you any ideas whatsoever as to what was the basis for these charges? For instance, do you have any interest or investment income from the UK? Even though you may be under earnings limit for income tax, any unearned income (such as interest) will be liable to social charges (CSG etc). That might be what the bill is for.

Clare you are a star thanks--- just knew there would be someone here who would help. Now we have to find a way of getting our money back i suspect that could take some time
Jaune--- our "earnings" are solely here as we have started to rent a summer gite --we have been living off our savings since moving here so there is very little interest. As you know the rates have just been getting worse and worse.
We will have to do some work to sort this all out but am feeling a bit more hopeful now.

Hi Lesley

I think the situation may be different for rental income

You will be liable for the charges on rental and investment income, as there is no prior condition on health affiliation on such income.

4.3.2. Social ChargesIn addition to income tax, the main other tax for which a landlord is liable is a social welfare levy called the prélèvements sociaux, (and otherwise also known as CSG/CRDS), at the rate of circa 12.1% on net rental income. This charge is deductible against income tax at the rate of 5.8%.

These charges are payable even though you may not be a registered business in France.

Non-residents are not liable for the tax.

http://www.french-property.com/guides/france/working-in-france/letting-property/taxation/furnished-accomodation/

Clare

If it is rental income then that suggests a net rental income of around €2300. Would that be about right Lesley?

Thanks both Does this still apply do you know after oh is 65? grasping at straws here Lx

It's my understanding that social charges are payable by all, but I do stand to be corrected.

There is the opinion (and one that I do understand, believe me) that those on E forms (E106, E121, etc) are in effect paying twice, since the UK government will be repaying your health costs to France... so why should such people contribute, via CSG etc, too?

I can see that there is a sort of 'double contribution' going on but I think you might have to consider it a price to pay. Perhaps that is what was meant by "showing solidarity"?

Is the UK any different here? Genuine question, I don't know. Would such earnings be subject to NI?

Having read a few documents on this subject over the past couple of days, my understanding is this.

You do not pay social charges on your pension once you are in receipt of an E 121, nor on an early pension whilst covered by an E106. In fact, it appears that due to a patchy system, some people who retired early will never pay charges before they reach retirement age and some will

It does seem to be the case though, that charges will be due on any rental income.

If I've read that wrong, please correct me someone

clare

That's my understanding too. I am over pensionable age and receive my pension in France. I also run a business here. I pay social charges on my salary and dividends from the business but not on my pension.

we dont seem to have an E --- anything

As far as I am aware, Social Charges are payable on all investment income regardless of your overall income.

There was a thread running on AI a while ago, where someone was claiming that if you had an E121 form then you would be exempt from paying this.

I checked with our local tax office and was told that this is not the case, so even if your income is below the tax threshold and you have received interest from savings, or any other form of investment income, you will have to pay Social Charges on the that income.

I wish it were otherwise!!

I believe (but can't prove it to you as I sorted it with the tax office in meetings, so no letter) that as Sky says, it's the untaxed investment income that is subject to social charges. Aged parent has always got stung for it, and I so do we.

We live on our UK pension with no tax nor social charge and we have had in the last year a small taxed investment income and have had social charges taken out at source.

Hi,
There is a rule that Social Charges (CSG), are not due on pensions when total income is under a certain sum. This is only applicable to french pensioners as UK ex-pat pensioners don't pay CSG on their pensions. There is no exemption for so-called "un-earned income" , like rents and investment income , for anybody.