Brussels, 26/02/2015 (Agence Europe) - The income from assets of French residents who work in another member state cannot be made subject to French social contributions (General Social Contribution 'the CSG') or the Social Debt Repayment Contribution ('the CRDS')
On Thursday 26 February in Case C-623/13, the European Court of Justice held that the prohibition on overlapping laid down by Regulation No 1408/71 (social security systems for workers who move within the EU) is not conditional on the pursuit of a professional activity and therefore applies irrespective of the source of the income received by the person concerned.
The Court therefore provides a response to the Conseil d'Eìtat (Council of State) regarding a dispute stemming from the fact that Geìrard de Ruyter, a Netherlands national who works in the Netherlands but who is resident in France, objects to the CSG, the CRDS and other social contributions being levied on his income from assets (life annuities purchased in the Netherlands)
In its ruling, the Court backs the position of the Advocate General (see EUROPE 11182). In the present case, it holds that income from assets is subject to the same justification as in the two previous rulings (C-34/98 and C-169/98), that deducting social security contribution from income from professional activities and replacement activities of French residents subject to the same kind of contributions in other member states is prohibited. It considers that subjecting migrant workers such as the interested party to the CSG and CRDS in France constitutes unequal treatment compared to other people resident in France who were only obliged to pay into a French social security system. (Francesco Gariazzo)