property income, life insurance… Know everything

Social contributions 2022: property income, life insurance... All you need to know

[PRELEVEMENTS SOCIAUX] What income is subject to social security contributions? At what rate and how should payments be made?

All persons receiving income, regardless of whether their tax domicile is in France or abroad. On the other hand, the tax domicile determines the type of income subject to social security contributions. Social security contributions relate to earned income (salary, benefits, etc.); replacement income (unemployment benefits, retirement pension, etc.); certain income from assets and investments (in particular property income and capital gains on real estate). For persons domiciled abroad for tax purposes, only income from activity and replacement income from French sources, as well as property income and capital gains on real estate and securities relating to precious metals and objects are subject to social security contributions.

What social levies on property income?

Social levies on property income have a rate of 17.2% applying the amount of taxable rent.

What social security contributions apply to life insurance?

Social contributions on life insurance are also fixed at the rate of 17.2%.

Social contributions and retirement, how does it work?

The social contributions on retirement pensions are the CSG and the CRDS, the rates of which vary according to household income.

Is the ELP subject to social security contributions?

All PELs are subject to social security contributions set at a rate of 17.2%.

Social contributions and dividends, how do they work?

All dividends are subject to the single flat-rate deduction of 30%, including a rate of 17.2% for social contributions.

What social levies on a PEA?

Regardless of the date of the withdrawals made from a PEA, the amount of the net gain realized since its opening is subject to the rate of 17.2%.

What is the rate of social security contributions?

The rate differs depending on the type of income:

  • Employment and replacement income is subject to the general social contribution (CSG) and the contribution to the repayment of social debt (CRDS). If the CRDS rate remains at 0.50% for all these types of income, the CSG rate is for example 9.2% on wages, but 6.2% on unemployment benefits (with a rate reduced to 3.8% or 0%, depending on income).
  • Income from assets and investments are subject to both the CSG at 9.2%, the CRDS at 0.5%, but also the solidarity levy at 7.5% (i.e. an overall rate of 17.2% ).

When do you pay social security contributions?

Since the introduction of the withholding tax, social security contributions on earned income and assets are made automatically in the form of monthly installments. Most investment income is also withdrawn directly. But capital gains on real estate and securities concerning precious metals and objects must be indicated when filing the tax return, then paid after receipt of the tax notice.

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