Separate Bills for social charges

[Ron Avery]

A friend recently received bill for "Contributions Social".  As their income was less than the income tax threshold they had nothing to pay on Impots but had declared interest on savings received.  They received a Contributions Sociale bill this week, which I thought was normal as they had paid no income tax.

However today, we also received a bill for Contributions sociale that work out at nearly 15% of the total interest declared although the CRDS is based on total income.

 Two questions

A) Isn't the CRDS element already included in the impots bill as when we excluded the interest from the calculation the tax bill halved and

B) Is it normal to receive a second bill for Contributions Sociale after the impots have been paid?

Thanks

[Teamedup]

As far as I was aware the social contributions have nothing to do with the impots.

As french people would get this debited at source they wouldn't get a separate bill. It is taken from interest, pensions, wages, probably even any benefits people are on etc etc etc and believe me it hits everyone.  That is why I do tend to go on about this evil stealth tax that hits the poorest in society. It is paid well before any tax declaration is done.

That an extra bill has been sent does not surprise me and it gets paid on everything one 'earns'..... perhaps up to an upper limit, which ofcourse means that the well off would not get screwed as much as the poor.

As I take it your interest is from an non french source, you will have to pay it separately. A lot isn't it, tell us about it, we and everyone we know get hit with this every single month.

 

[LesLauriers]

In my experience;

A; No it is not charged with impots it is calculated at the same time and billed seperately as Contributions Sociales. If you do your impots online you will see the figures listed.

B; Absolutely normal, impots first then followed by contributions sociales. You will also see a figure quoted that is allowed against next years impots, if you pay any! It will say "Montant de la CSG deductible......" and will be pre printed on next years return.

French tax payers can elect to have interest taxed at source by paying a set forfait (PLF)or can recieve payment untaxed (IRPP) to be taxed at your highest tax rate. For example ING Direct will either deduct the set 16% or pay the interest gross.

For lower rate tax payers it is better to be paid gross.

[LesLauriers]

In my experience;

A; No it is not charged with impots it is calculated at the same time and billed seperately as Contributions Sociales. If you do your impots online you will see the figures listed.

B; Absolutely normal, impots first then followed by contributions sociales. You will also see a figure quoted that is allowed against next years impots, if you pay any! It will say "Montant de la CSG deductible......" and will be pre printed on next years return.

French tax payers can elect to have interest taxed at source by paying a set forfait (PLF)or can recieve payment untaxed (IRPP) to be taxed at your highest tax rate. For example ING Direct will either deduct the set 16% or pay the interest gross.

For lower rate tax payers it is better to be paid gross.

[Teamedup]

 And remember that not all CSG is deductable.

[LesLauriers]

"And remeber that not all CSG is deductable."

It was just under half on this years bill which had a high interest component, there are exact figures but I don't have them to hand right now.