TaxForm/S1/Social charges

[leclairon]

Having already put the tax form to bed, I have just received an update from Connexion re the S1 to say it is recommended you tick 8RP and 8RQ on 2042 . I have, as usual, ticked 8SH and 8SI, which seems to work. Does anyone also tick8RP and 8RQ. Is it necessary? First time I have seen that mentioned. It looks like a doubling up of 8SH and8SI.

[Nomoss]

I'll try again

[Nomoss]

I received this response in 2021

21.05.17 Fisc re tick boxes.jpg

[suein56]

8RP and 8RQ

So these are covering 'revenus d'activité' .. i.e. profession/work, supposedly current work/activité ?

[elsie]

I've not used these. I thought they were covered by 8SH/8SI if you had an S1 and these were only for cross-border workers or those with pensions but without an S1.
It seems many of us will need to make a "belt and braces" correction, whether it is or isn't needed as it doesn't do any harm!

but
Using Perplexity AI: (However, I've not checked whether other AI give different answers or conditions)

Q. When to Use 8RP/8RQ on French Tax Form 2042
A. You should tick boxes 8RP (for the first declarant) and 8RQ (for the second declarant, if applicable) on the French tax form 2042 when you are not covered by the compulsory French health insurance scheme—for example, if you are covered by a foreign health system such as via an S1 form from the UK or another EU country. This is especially relevant for expatriates and retirees who are resident in France but whose healthcare is paid for by another country.

Why Tick 8RP/8RQ?
Purpose: Ticking these boxes ensures that certain types of income (such as pensions or employee shareholder dividends) are exempt from French social charges (CSG, CRDS, etc.) or are charged at a reduced rate, rather than the standard rate of up to 17.2%.

Who Should Tick:
Holders of an S1 form or equivalent.

People insured under CHIS (CERN Health Insurance Scheme) or Swiss LAMal, or any other foreign health insurance, and not by the French social security system.

If you have a co-declarant (spouse/partner) in the same situation, they should also tick the relevant box

Example
If you are a UK pensioner living in France with an S1 form, you should declare this by ticking 8RP (and 8RQ for your spouse if they also have an S1). This will save you from paying unnecessary French social charges on your pension income.

In summary:
Tick 8RP/8RQ on form 2042 if you are not covered by the compulsory French health insurance scheme (e.g., you have an S1 or similar coverage from abroad), to ensure your relevant income is not subject to French social charges

[leclairon]

Thank you, Elsie.

[Headers]

I went back into the system last night and added the ticks as suggested here. Thankyou.

[elsie]

I changed mine as well but it didn't make any difference to the final tax/social figures

[Sparkle]

Oh hec this sort of question always sends me into panic mode ! So I’ve found some old info that I kept from another Forum posted by Pomme back in 2021 - I don’t know if it’s still applies but I don’t tick these boxes only 8SH & 8SI.

The full 2020 tax brochure pratique https://tinyurl.com/yc69bavh explains 8RP/8RQ:explains:

NON AFFILIATION TO A FRENCH HEALTH INSURANCE SCHEME
The CSG and CRDS on earned income and the 10% employee contribution applicable to gains from the exercise of stock options and to gains from the acquisition of free shares taxed according to the rules governing salaries and wages are payable by taxpayers affiliated to a compulsory French health insurance scheme.

If you are not covered by a compulsory French health insurance scheme, tick box 8RP or 8RQ. Income declared in boxes 1TT or 1UT will not be subject to social security contributions (CSG, CRDS, employee contributions).
and 1TT/1UT are only for

Gains from the exercise of stock options granted on or after 28.9.2012; gains from the acquisition of free shares granted on or after 28.9.2012 on a decision taken no later than 7.8.2015; gains from the acquisition of free shares granted on a decision taken on or after 31.12.2016 for the portion exceeding €300,000.

Translated with DeepL.com (free version)

[elsie]

@ Sparkle: You don't say what your situation is.

If you have an S1 you should 8SH/8SI.

From 2042:
Revenus du patrimoine exonérés de CSG et de CRDS
Vous êtes affilié à un régime d’assurance maladie d’un État de l’Espace économique européen,
du Royaume-Uni ou de la Suisse et vous n’êtes pas à la charge d’un régime obligatoire de sécurité sociale français . . . . . . . . . . déclarant 1 8SH cochez déclarant 2 8SI cochez

as you say, 8RP/8RQ only concern the figures in 1TT/1UT which are for
gains from the exercise of stock options and to gains from the acquisition of free shares taxed according to the rules governing salaries and wages are payable by taxpayers affiliated to a compulsory French health insurance scheme.

8SH/8SI and 8RP/8RQ are not mutually exclusive and cover income declared in different lines on 2042. Ticking both will do no harm. Not ticking 8SH/8SI if you have an S1 could result in higher social charges.