CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. French Workers In 'Third Countries' Liable For Social Security

French Workers In 'Third Countries' Liable For Social Security

by Ulrika Lomas, Tax-News.com, Brussels

18 January 2018


Income from assets of French nationals who work in a state other than a member state of the EU, the European Economic Area or Switzerland may be subject to French social security contributions, the European Court of Justice has ruled.

The case –  Frédéric Jahin v. the French Ministry of Economy and Finance - involved a French national, Frederic Jahin, who resided and worked in China and sought to obtain reimbursement of the levies collected on his income from assets, including income from real estate, and a capital gain realized on the transfer of immovable property.

The case was referred to the ECJ by France's Council of State, which sought clarification on the legitimacy of a rule which restricts the reimbursement of wrongfully collected levies by excluding persons affiliated to a social security scheme in a third country.

In its judgment, the ECJ took the view that the exclusion at issue constitutes a restriction on the free movement of capital, given that EU nationals affiliated to a social security scheme in another member state (EU/EEA) or Switzerland enjoy more favorable tax treatment (in the form of an exemption from, or reimbursement of, the levies at issue) than do French nationals who reside in a third country and are affiliated to a social security scheme in that country (in the present case, China).

However, the Court found that the restriction is justified in the present case because there is an "objective difference" between a French national who resides in a third country and is affiliated to a social security scheme there and an EU national affiliated to a social security scheme of another member state.

"[T]hat latter national alone is, owing to his movement within the EU, liable to benefit from the principle that the legislation of a single member state only is to apply in matters of social security," the court said in a statement

"As Mr Jahin has not made use of the freedom of movement within the EU, he cannot rely on that principle. It follows that income derived from the assets of French nationals who work in a state other than a member state of the EU/EEA or Switzerland may be subject to the French social security contributions."

TAGS: court | tax | law | China | legislation | social security | France | Switzerland | Europe

To see today's news, click here.

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 






Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Tax-News+ Updates

Receive FREE daily updates from Tax-News.com, straight to your inbox. Register Now!

For a tailored solution, choose to receive selected news updates for your preferred jurisdictions and topics, with our enhanced Tax-News+ subscriber service. Read more...

 

Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »