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The CRDS tax |
The CRDS “social debt redemption” tax was instituted in 1996 to provide CADES with funds it would need to retire social debt. Its current rate is 0.5%. It is charged on all earned income, replacement income, income from assets and investments, from the sale of precious metals and on winnings from games of chance. Most of the income exempted from this tax is replacement income that falls below a minimum level and some types of solidarity allowances, which consist mainly of unemployment and pre-retirement benefits and disability and retirement pensions, when these are not liable for income tax. The Act of 13 August 2004 expanded the taxable base from 95 to 97% of gross earnings and unemployment benefits. The Social Security Finance Act for 2012 increased this base to 98.25%. |
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The CSG tax |
The CSG “general social contribution” tax was instituted in 1991. To service the new 27 billion euro debt approved by the French parliament under the Social Security Finance Act for 2009, and pursuant to the Organic Act of 2 August 2005, CADES was hence granted 0.2 percentage point of the CSG tax. The CSG tax is very similar to the CRDS. It is mainly obtained from earned income and also from replacement income and income from assets, investments and game winnings. |
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The annual payment from the FRR pension reserve func |
Under the Social Security Financing Act No. 2010-1594 of 20 December 2010 for 2011, to balance out the funding of pension reform, CADES is to receive an annual payment of €2.1 billion from 2011 to 2024. |
