What are CSG and CRDS social charges in France, and who pays them?

CSG (Contribution Sociale Généralisée) and CRDS (Contribution au Remboursement de la Dette Sociale) are French social levies applied to nearly all types of income, separate from income tax. Together with other minor levies, they make up total social charges of 17.2% on investment income and 9.7% on earned income (salary and self-employment).

For wages and salaries, CSG is 9.2% (of which 6.8% is tax-deductible) and CRDS is 0.5%. These are withheld directly from pay by the employer alongside social security contributions. Self-employed individuals pay CSG/CRDS as part of their cotisations sociales, though rates and deductibility vary by regime.

For investment income, dividends, interest, capital gains, and rental profits, the social charges rate is 17.2%, consisting of CSG at 9.2%, CRDS at 0.5%, and additional levies totalling 7.5%. Under the flat tax (PFU), this 17.2% is included in the 30% rate. Under the barème option, 6.8% of the CSG paid on investment income is deductible from taxable income the following year.

Non-residents with French-source income are in some cases exempt from CSG/CRDS on rental income if they are affiliated to a social security system in another EU/EEA country, following EU court decisions. This is a nuanced area and specific advice is recommended.