pensions - aafi-afics - UNOG

French taxation
Liability of retired persons for payment of the French CSG and CRDS taxes
Insurance under French Social Security (S.S.) and its consequences for payment of the
CSG and CRDS taxes and joint use of S.S. and SHIF sickness benefits
The case of foreign residents – Additional clarifications
This section of the article published in French completes and clarifies the article published in our previous letter No. 30 of
December 2001, namely as regards the fiscal situation of retired foreigners residing in France and concerning the
subjection of their UN pensions to the French CSG and CRDS taxes. Further details may be found in the French version
of the article.
Extract from the regulation:
“Article L. 136 of the Social Security code reads as follows:
“Article L 136-1. A social contribution is instituted, for earned income and for replacement income, and payable
by: “individuals who are concurrently considered as being domiciled in France for the payment of income tax and who
are insured, on whatever grounds, by a compulsory French sickness insurance scheme”.
IV – The case of retired foreigners residing in France
a) The retired person has never worked in France and does not enjoy Social Security benefits. In conformity
with the provisions of the regulation of 2 May 2001, his pension is not subject to the CSG and CRDS taxes. His other
taxable income in France is subject to these taxes.
b) The retired person has worked in France and was insured under Social Security for at least one quarter.
He will be considered as the responsibility of Social Security only if he has claimed his rights and in this case he will meet
the conditions required by the regulation of May 2001 for his ‘international’ pension to be subject to the CSG and CRDS
taxes. He will however be able to enjoy sickness benefits under Social Security (see para. V the modalities for the joint
use of Social Security and SHIF sickness benefits.
c) The retired person receives a pension under the Social Security scheme of his country of origin or, in
accordance with his former activities in that country, he is entitled to sickness benefits under its national
Social Security scheme.
i – the country is one having a Social Security agreement with France
The interested party is entitled to enjoy sickness benefits by way of French Social Security but, in accordance
with the compensation mechanisms provided for international agreements, the expenses incurred by the French Social
Security scheme are reimbursed to it by the Social Security scheme of the country in question. Thus, contrary to
appearances, this person is not in the final analysis the responsibility of the French Social Security scheme. He does
not therefore meet the second condition foreseen in the regulation of 2 May 2001 and his pension is not subject to the
CSG and CRDS taxes.
ii – the country is not one having a Social Security agreement with France
The interested party is not entitled to enjoy sickness benefits under French Social Security. He does not meet
the conditions foreseen in the regulation of 2 May 2001. His pension is not subject to the CSG and CRDS taxes.
V – Reminder of the possibilities for joint use of Social Security and SHIF benefits
Utility of complementary insurance
When the retired former official residing in France is insured under Social Security and SHIF, he can obtain the
reimbursement of his medical expenses by these two schemes. It is compulsory for him to submit his bills firstly to the
Social Security scheme, which constitutes his primary scheme. He then submits a photocopy of his bills and the original
of his Social Security statement of account to SHIF which accordingly plays the role of a complementary scheme. If the
amount which is not refundable by Social Security is less than or equal to 80 % of the initial bill, SHIF will reimburse the
whole of this amount in accordance with its reimbursement rate which provides for its responsibility for 80 % of
expenses. The interested party will thus benefit from a total reimbursement of 100 %.
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