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COTISATION SUBSIDIAIRE MALADIE - CSM

As you may have heard the French State has changed the rules regarding contributions to Health Care as of 2016 and relating to payments from 2018 onwards.

As is the nature of these things the rules are quite detailed. I give below the new arrangements with some examples, but as always if you have any problems or require clarification in respect of your particular situation please contact me.

As part of the implementation of Universal Health Protection (PUMa), the Social Security law for 2016 states that any beneficiary of the French health care scheme must contribute to the financing of health insurance through the payment of a "subsidiary contribution". The amount is dependent on an individual’s situation and resources.Many of you would have received standard letters about this at the end of November 2017 stating that this new ‘payment’ could apply to you and that you would receive a further letter with a payment request in December 2017 which again many of you would have received of late . Replacing the basic Universal Health Coverage (CMU) cover came into effect on January 1, 2016. It applies to everyone (regardless of their nationality) who work or reside in France in a “stable & permanent manner.” It guarantees that by paying into the system, French health insurance will continue to pay for health costs of the individual.

This charge replaces the CMU scheme and is annual, per person and not per household or ‘Foyer Fiscal’ It covers a period of 12 months from 1 January to 31 December of the calendar year. It is due from the date of affiliation to the General Health Care system (now PUMa) and ceases to be due the day after the end of the affiliation, i.e. if you left France.

Who should be paying the CSM charge?

The Cotisation Subsidiaire Maladie covers people in France with low incomes BUT who have sufficient income from capital (over 25% of the PASS - Plafond Annuel de la Securité Sociale which was 3862.00 € per month € for 2016).

Specifically, concerning people meeting the following criteria:• Residing in France in a stable and regular way• If the Income from a professional activity (employed or self employed) of the “main person of the household” (usually the husband) and their spouse, partner or PACS partner is less than 10% of the PASS (in respect of the calendar year for which the contribution is due), i.e. 3 862 € per month in 2016.• The insured person and his / her spouse or PACS partner do not receive any other income: retirement pension, pension, unemployment benefit, for the year for which the contribution is due.

Who are not concerned with this contribution?

• People who do not meet the above criteria.

• Pupils and students in education.

• Swiss Border residents living in France and engaged in a professional activity in Switzerland or receiving a pension of Swiss origin who have opted not to be covered by health insurance in Switzerland and are therefore affiliated to health insurance in France. They already owe a specific contribution

The amount to pay: The amount of the CSM payment is 8% of your taxable income, in respect of the following revenues:

Rental or property income.
Investment and Capital income.
Gains from investment portfolios.
BIC/BNC self employment income (micro entrepreneurs and auto entrepreneurs).

To calculate the base rate, these incomes benefit from a reduction of 25% of the PASS, which is 9 654.00 € for 2016 before the amount to pay is calculated.

Concerning income derived from a self employed activity in France, a progressive scale is applied depending upon whether you have received income between 5 or 10% of the PASS, being 1 931.00 € and 3 862.00 € in 2016.

Example 1:

Mr Smith’s income is less than 5% of the PASS, in 2016.

Mr Smith receives € 1,430 as an auto entrepreneur and € 15,660 in rental income in 2016.His income from his auto entrepreneur activity is less than 5% of the PASS, his rental income is greater than 25% of the PASS.The annual amount of the CSM charge will be: 8% X (15,660 - 9,654) = 480,50 €.The contribution will be calculated and called in 2017.

Example 2:

Mrs Wallace has self employed income from her auto entrepreneur which is between 5% and 10% of the PASS in 2016Mrs Wallace receives € 2,500 from her business income and € 15,660 from dividends.
.
Her activity income is between 5 and 10% of the PASS and her capital income is greater than 25% of the PASS.The annual amount of the contribution is: 8% x (15,660 - 9,654) × 2 × (1 - 2,500 / 3,862) = 338.80 €.The contribution will be calculated and called in 2017.

When a person registers as a beneficiary of the PUMa health scheme during the year, the amount of the contribution to pay is calculated on a pro rata basis according to the number of months during which it is covered by the French health insurance.

Payment of the CSM charge

The contribution is due for payment no later than the last day of November of the year following the year for which the insured person benefits from the PUMA. It must be paid within 30 days. If the insured person wishes to contest the amount of the contribution, they must provide evidence detailing their situation and why they are not in agreement. From the date you send the documents and letter (by registered post), the payment period is suspended without any increase or penalty of delay being applied pending the examination of its situation.

For further details please

Contact me.