Social Tax

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Enaid
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Social Tax

Post by Enaid »

We have just received our French tax bill. We rent our French house out to holiday-makers in the summer months. We don't live in France. For the first time they have added Social Tax.
We have read somewhere that this only applies to people who reside in France. Does anyone know if this is true?
Thanks.
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kevsboredagain
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Post by kevsboredagain »

I believe you are correct. They did try to introduce it but the EU told France it was not allowed. That decision may be reversed in future but we're still in the EU for the time being.

Which box did you complete on the tax return? I've not received mine yet for this year after filing online.
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Moliere
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Post by Moliere »

I'm afraid the new levy might be right. My accountant warned me a few months ago that the Social Tax was to be expected in my demand this year - they have restructured it to get round the EU ruling.
Sorry.
Mols
Jumping is just dressage with speed-bumps.
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kevsboredagain
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Post by kevsboredagain »

Indeed it doesn't look good. Nice how countries like France and Spain go after non residents as they know the only authority who can stand up for them is the EU. France goes one step further and simply renames something to ensure people pay social insurances in multiple countries.

http://www.spectrum-ifa.com/french-tax-changes-2016/
Enaid
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Post by Enaid »

Thanks for that.
Boo! :(
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Bassman
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Post by Bassman »

Sadly someone has to pay for all our "functionaries"
annedab
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Post by annedab »

Apologies for slight vagueness (OH deals with all this stuff) but we got a bill for this new tax earlier this year and it was a bit of a shock, but after a few phone calls, they agreed to reassess the existing taxes (fonciere and habitation I think) and after they made the adjustments we actually ended up paying slightly less in total. I can get the full details from OH when he is back at the weekend if it helps.
Regards

Anne

If there's no such thing as co-incidence, then why is there a word for it?
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Moliere
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Post by Moliere »

Yes please, Annedab, that would be very interesting.

Mols
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ronsat
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Post by ronsat »

I was just about to ask the same question. The prélèvements sociaux adds about 77% to our tax bill on top of the impot sur le revenue. I must admit that I do not understand how the abattement is calculated.
We are Canadians who love spending time in Languedoc.
http://www.languedocvacationhome.ca
Circé
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Post by Circé »

I may well be wrong, I'm not a tax expert, but I think that the imposition of social charges Is higher if you are not an EU resident.
In any case, best to pay for professional advice if the sums are significant.
BTW, ronsat, I was interested in your place until I delved into TA and found you dont't accept pets (I couldn't see that on your own website but might have missed it).
Villarais
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Post by Villarais »

I shall follow this thread with interest, as I have just received an e-mail telling me that my tax statement is ready, and it too includes the social charge for the first time.

I frequently get a statement stating that there is no tax to pay (I have quite a small holiday rental income) and I had assumed that there is some equivalent of the UK personal allowance. I see from Kev's link that there is indeed a barème for payment and my small income falls within the zero band. In years when the barème has not been applied I have written to the non-resident's tax office in Paris, and the tax has been removed. It seems that another letter is needed, and I wonder if the social charges will disappear too.

I filled in item 5NG on the on-line tax form as I consider my rental to be a meublé de tourism, having filed the form at the mairie, even though there has been no follow-up and I am not classified.

I will be interested to hear how others get on.
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Moliere
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Post by Moliere »

Yes, here it's come. Social charge - an extra 15.5% levy on top of income tax. I'll talk to my accountant, but it looks like the b***ers have nailed us, despite the UK Govt paying France for our healthcare.

Talk about riding roughshod over the rules!

Mols
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limousin-cottage
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Post by limousin-cottage »

Moliere wrote:Yes, here it's come. Social charge - an extra 15.5% levy on top of income tax. I'll talk to my accountant, but it looks like the b***ers have nailed us, despite the UK Govt paying France for our healthcare.

Talk about riding roughshod over the rules!

Mols
Do you receive a UK State Pension and reside in France Mols? If so, you are exempt from social charges and you can claim it back. We just received the past 3 years social charges back, and have just received the 2015 tax statement, with nil to pay. I thought we would have to put in a reclamation for 2015, but the amount was automatically refunded into our account (as we still pay them monthly by direct debit)
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Moliere
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Post by Moliere »

Limousin-cottage, yes that's been the case up to now, but this year is different. My accountant warned me the rules have changed and to expect it, but I will be querying it with him anyway.

Mols
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limousin-cottage
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Post by limousin-cottage »

Moliere wrote:Limousin-cottage, yes that's been the case up to now, but this year is different. My accountant warned me the rules have changed and to expect it, but I will be querying it with him anyway.

Mols
Oh well, it didn't take them long to wrangle out of that one then lol! I take it you mean the new rules will apply to 2016 income?
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