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what are they ? Life and pension insurance


SOCIAL CONTRIBUTIONS. What income is subject to social security contributions? At what speed and how should payments be made?

All persons receiving income, regardless of whether their tax residence is in France or abroad. In contrast, it is the tax domicile that determines the type of income that is subject to social security contributions. Social security contributions relate to earned income (wages, benefits, etc.); replacement income (daily allowance, retirement pension, etc.); certain income from assets and investments (especially income from property and capital gains on real estate). For persons tax resident abroad, only income from activity and compensation from French sources, as well as capital income and capital gains on real estate and securities relating to precious metals and objects are taxed.

What social taxes on property income?

Social tax on property income has a rate of 17.2% the amount of the taxable rent.

What social contributions apply to life insurance?

Social contributions on life insurance are also set at 17.2%.

Social contributions and pension, how does it work?

The social contributions for retirement pension are CSG and CRDS, the rates of which vary depending on the household’s income.

Is ELP subject to social contributions?

All PELs are subject to social contributions set at a rate of 17.2%.

Social contributions and dividends, how do they work?

All dividends are subject to the flat deduction of 30%, including a rate of 17.2% for social contributions.

What social charges on a PEA?

Regardless of the date of withdrawals made from a PEA, the amount of net gain realized since opening is subject to the 17.2% rate.

What is the rate of social contributions?

The rate varies depending on the type of income:

  • Employment and compensation income is subject to the general social contribution (CSG) and the social debt repayment contribution (CRDS). For example, if the CRDS rate remains at 0.50% for all these types of income, the CSG rate is 9.2% on wages but 6.2% on unemployment benefits (with a rate reduced to 3.8% or 0%, depending of income).
  • Income from assets and investments is subject to both CSG at 9.2%, CRDS at 0.5%, but also solidarity tax at 7.5% (ie a total rate of 17.2%).

When do you pay social contributions?

Since the introduction of the withholding tax, social contributions on earned income and assets are paid automatically in the form of monthly installments. Most investment income is also drawn directly. But capital gains on real estate and securities relating to precious metals and items must be declared when filing the tax return, then paid after receipt of the tax return.

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