How To Claim 'Social Charges' Back In France
The French government got condemned in February 2015 by the European Court of Justice for taking social charges from people who are benefiting from another health system than the French one. Therefore the French government has agreed to reimburse those people and I am pleased to say that all the people that BH-Assurances/Allianz has helped to claim got some money back!
1. What is CSG CRDS: La "Contribution Sociale Généralisée et la Contribution pour le Remboursement de la Dette Sociale" was created in 1991 to help finance the French health system (which is in debt). In 1991, the % tax was 1.1%. Successive governments (and there have been a few!!) have increased this tax so now it is up to 15.5%!!This tax is taken from revenues from rental income, pension, salaries, capital gain, interests, etc. and the % of the tax can differ depending on what revenue is taxed. Finally there is also a discount and exemption depending on your total income.
2. European Court of Justice Ruling: The ruling came after a Non-resident (I actually think it was French) complained of being taxed social charges on the interest of an Assurance Vie (it's a saving account) he had kept in France while he was living and working abroad (Belgium in this case). He was therefore contributing to two health system. The one in Belgium where he worked and lived via his salary contribution and the one in France via social charges. The European Court of Justice agreed with him by saying that the CSG CRDS was a tax financing the French health system and therefore it is wrong to pay twice (contribution in both countries) for something you only get once.
3. Who can claim social charges back: First and foremost, non-French residents(but European citizens) who have revenues in France from rented properties, investment, etc. or who have been charged Social charges on the capital gained on the sale of a holiday property (you can get the social charges back not the capital gain tax!).
But more importantly, French residents of European nationality who are in receipt of an S1 and have been charged social charges. Many of you are in receipt of your state pension (old age pension) and you are in the French health system via an S1 form which was sent to you by your government health department (Newcastle for the British). That means that any expenses with the French health system is covered by your S1; meaning reimbursed to the French health system by the country who issued the S1. So if you have been taxed social charges on any revenues, you can claim it back! Your claim can go back 3 years.
So in plain English, if you are a UK pensioner who got charged social charges on UK investment in the last 3 years, you can get it back.
4. How do you claim it back: Quite easy really, just write a letter to your tax office alongside a copy of your S1 and copies of your "Avis d'imposition" (tax bill) showing the social charges taken. Send the letter by registered mail and make sure you keep a copy of everything.
Here is an example of the letter you should write to get social charges taken from interest on investment back:
« Madame, Monsieur,
Nous venons par la présente demander le remboursement des contributions sociales que nous avons payées sur nos revenus de placement pour les années 2015, 2014 et 2013 (voir photocopies).
En effet, en accord avec la décision du Conseil d'État N° 365511 Extraite de l'alinéa 3 :
"Ne peuvent être assujetties à des contributions relevant du champ d'application du règlement n° 1408/71 les personnes qui résident en France mais qui ne relèvent pas du régime français de sécurité sociale "
Nous n'aurions pas dû être assujettis à ces contributions car nous sommes couverts par le régime social Britannique via une S1.
Au vu de tout ce qui précède, il vous est demandé le dégrèvement des prélèvements sociaux litigieux, et la restitution de la somme de XXX € assortie des intérêts moratoires.
Dans l'attente de votre réponse positive, veuillez recevoir mes salutations les plus sincères. »
If you did not keep a copy of your S1, phone CPAM or Newcastle and they will send you a copy. Note that if you are married, the French tax office will want to see the two S1.
5. What now: On the 1st of January 2016 the French government has changed the allocation of the social charges to help the elderly!! Instead of helping the French health system so that they can tax social charges again!! Yes, they can do that and they have!!So even though you can get the past one (last 3 years) back, it won't stop the French government taxing you again in the future. However, "Le Monde" newspaper recently published that someone is already challenging the French government on this change so it's probably not the end of this story!!So keep your fingers crossed.
With thank to Thierry HATESSE and his team at ALLIANZ INsurance for the information. 
