Announcement from the Legal Service, FI and HR Departments

Internal Taxation

At its session on 15 September 2005, the CERN Council adopted a system of internal taxation of salaries and emoluments, which entered into force with effect from the 2005 fiscal year.

This system will simplify the tax situation of the members of the personnel in the Member States, particularly France and Switzerland.

French nationals and those with permanent resident status in France will no longer be taxed on salaries and emoluments paid by CERN. Furthermore, the Organization has secured agreement that income from CERN will no longer be taken into account in the calculation of the tax rate applicable to any other income (the 'taux effectif' will no longer apply).

As far as Swiss members of the personnel domiciled in Switzerland or France are concerned, the Organization is awaiting information from the Swiss authorities concerning the conditions for the tax exemption of income from CERN as a result of the introduction of internal taxation. Information will be published in a forthcoming issue of the Bulletin.

In practical terms, salary slips will henceforth indicate that the salary is paid net after internal taxation.

Members of the personnel will shortly receive information on the practical arrangements (particularly regarding income tax returns) resulting from the introduction of this system, which will be determined in collaboration with the two Host States.