TAX SYSTEM FOR MEMBERS OF THE PERSONNEL LIVING IN FRANCE

- Declaration of income for 2001 -

This text is also available on the Human Resources Division website.

Important

  1. The French tax authorities have informed the Organization of certain changes to the tax system applicable to certain members of the CERN personnel residing in France. The CERN Management is currently seeking to clarify a number of points relating to the application of these measures. For the moment, members of the personnel residing in France are requested to follow the instructions outlined below and any other related instructions published later in 2002.
  2. To deal with the increasing number of requests for personal advice, the Human Resources Division has set up a Help-Desk, on 72838 (*), which will direct you to the relevant in-house or outside services.

  3. However, as the Human Resources Division cannot speak for the tax authorities and does not have the necessary resources to handle all the problems that are referred to it, members of the personnel are strongly urged to contact the French tax authorities directly, either at the information organised at the places and times given below or via their local tax offices ('Centre des Impôts' and/or 'Trésorerie').
  4. Finally, practical information on the procedure for income declaration and income tax calculation in France can be obtained on the French Ministry of Economy, Industry and Finance website http://www.finances/gouv.fr/.

I. Declaration of Income for 2001
All members of the CERN personnel residing in France for more than six months in 2001, whether French citizens or not, are required to complete a declaration of income ('Déclaration des revenus') for 2001. Members of the personnel who have not complied with this formality by the given deadline will later receive a letter of reminder ('mise en demeure') from the French tax authorities.

1. General

  1. The deadline for submitting the declaration is Monday 25 March 2002 at midnight.
  2. The tax authorities normally send out a declaration form to all those who filed one the previous year.If you have not automatically received a form by Sunday 10th March 2002, please apply for one directly from your local 'Centre des Impôts','Trésorerie' or 'Mairie', or via the Internet from the website of the above-mentioned Ministry of Economy, Industry and Finance. CERN does not have any tax declaration forms.
  3. We advise you to keep a photocopy of the duly completed duplicate of your declaration and, where appropriate, of your certificate of remuneration.
  4. You are earnestly requested to enter the word 'CERN' to the right of your signature on the first page of the 2001 income declaration form.
  5. The tax assessment notices relating to income for 2001 will be issued around September/October 2002. For non French members of personnel, this tax assessment comes in the shape of a pre-printed recto/verso form containing the statement'la déclaration que vous avez déposée ne comporte aucun revenu pour l'année xx' (i.e. the declaration you have made does not mention any income for the year xx) and confirms that your declaration had been duly recorded. This document acts inter alia as certification that you are exempt from taxes in France. It must be retained and not returned to your Taxation office.

Please now refer to the section relating to your specific circumstances:

  • French members of the personnel in receipt of a remuneration/payment from CERN § 2.1
  • Permanent residents in receipt of a remuneration/payment from CERN § 2.2
  • Non-French members of the personnel in receipt of a remuneration/payment from CERN § 2.3
  • Users/Unpaid Associates § 3

2. Members of the personnel in receipt of a remuneration or payment from CERN

In accordance with the Staff Rules and Regulations, staff members and assimilated members of the personnel (Fellows) a "remuneration" from CERN, whereas associated members of the personnel (Paid Associates, Project Associates or Unpaid Associates in receipt of a subsistence allowance, and Students) receive a 'payment' from CERN.

2.1 French members of the personnel

2.1.1 French members of the personnel holding a CERN contract of a duration equal to or greater than 12 months

French members of the personnel residing in France for more than six months in 2001, in receipt of a remuneration or payment from CERN and holding a contract with the latter of a duration equal to or greater than 12 months are required to declare their CERN income (remuneration or subsistence allowance).

  1. CERN income should be declared, in French francs, on Forms 2047 'Revenus encaissés hors de France' and 2042 'Déclaration des revenus 2001' in box AJ if you are signing the declaration yourself, or in your spouse is signing it (part 1 of the form, page 3, under the heading 'Traitements, salaires').
  2. The certificate of CERN remuneration for 2001, which will be sent to you by Finance Division, should be enclosed with the declaration. You will receive a single copy of this certificate. Any French member of the personnel who has not received one should contact the salaries office - tel. 73904

  3. French members of the personnel in receipt of a subsistence allowance for a period greater than 12 months (Project Associates and Students in particular) should apply for this certificate from the Salaries office - tel. 73904
  4. Any other income from a French source must be declared in the relevant boxes.
  5. French members of the personnel who did not hold a CERN contract for the whole of 2001 must state under the heading 'autres renseignements' on the last page of the declaration form the dates on which their contracts started and ended in order to certify that they were in receipt of a remuneration or payment from CERN under this contract for a period equal to or greater than 12 months.

The tax calculated on this income, which will be shown on the tax assessment notice sent to you by the tax authorities, will be paid by the Organization directly to the relevant tax office.

2.1.2 French members of the personnel holding a CERN contract of a duration of less than 12 months

French members of the personnel residing in France for more than six months in 2001, in receipt of a remuneration or payment from CERN and holding a contract with the latter with a duration of less than 12 months, are required to declare their CERN income (remuneration or subsistence allowance).

  1. CERN income should be declared, in French francs, on Forms 2047 'Revenus encaissés hors de France' and 2042 'Déclaration des revenus 2001' in box AJ if you are signing the declaration yourself, or in box BJ if your spouse is signing it (part 1 of the form, page 3, under the heading 'Traitements, salaires').
  2. A certificate of CERN remuneration for 2001 should be enclosed with the declaration. This certificate may be obtained from the Salaries office - Tel. 73904.
  3. Any other income from a French source must be declared in the relevant boxes.
  4. State under the heading 'autres renseignements' on the last page of the declaration form the duration of your contract with CERN ('Contrat CERN du xx au xx').
  5. Under its present rules and regulations, the Organization cannot reimburse the tax payable on this income from CERN.

The CERN Management considers that the tax position in France of the members of the personnel to whom the present paragraph applies may change as a result of the current discussions on this subject with the French authorities, but is not in a position to state at this stage when such changes might occur. All relevant information on this subject will be as soon as possible in the Weekly Bulletin and/or on the Human Resources Division website. Any members of the personnel who might be affected are invited to call 72838 in order to have their names registered.

2.2 Members of the personnel who are 'permanent residents'

Non-French members of the personnel who resided in France for the twelve months prior to taking up their appointment at CERN, whether in gainful employment or not, are considered by the French tax authorities as 'permanent residents'.

2.2.1 Members of the personnel who are permanent residents and hold a CERN contract of a duration equal to or greater than 6 months

Non-French members of the personnel are permanent residents, residing in France for more than six months in 2001, in receipt of a remuneration or payment from CERN and holding a contract with the latter of a duration equal to or greater than 6 months, are required to declare their CERN income (remuneration or subsistence allowance).

  1. CERN income should be declared, in French francs, on Forms 2047 'Revenus encaissés hors de France' and 2042 'Déclaration des revenus 2001' under the heading 'autres imputations, reprises de réductions d'impôt, conventions internationales, divers' (part 8, page 4, TI).
  2. A certificate of CERN remuneration for 2001 should be enclosed with the declaration. This certificate may be obtained from the Salaries office - Tel. 73904.
  3. Any other income from a French source must be declared in the relevant boxes.
  4. Permanent residents who did not hold a CERN contract covering the whole of 2001 must state under the heading 'autres renseignements' on the last page of the declaration form the dates on which their contracts started and ended in order to certify that they were in receipt of a remuneration or payment from CERN under this contract for a period equal to or greater than 6 months.

Your CERN income will not be taxed directly, but will be taken into account to calculate the tax rate applicable to any other income you have from a French source ('Taux effectif' method)1)

1) CERN has lodged a request with the French authorities for clarification of this special tax system as well as justification for its application to permanent residents.

2.2.2 Members of the personnel who are permanent residents and hold a CERN contract months

Non-French members of the personnel who are permanent residents, residing in France for more than six months in 2001, in receipt of a remuneration or payment from CERN and holding a contract with the latter of a duration of less than 6 months are required to declare their CERN income (remuneration or subsistence allowance).

  1. CERN income should be declared, in French francs, on Forms 2047 'Revenus encaissés hors de France' and 2042 'Déclaration des revenus 2001', in box AJ if you are signing the declaration yourself, or in box BJ if your spouse is signing it (part 1 of the form, page 3, under the heading 'Traitements, salaires').
  2. A certificate of CERN remuneration for 2001 should be enclosed with the declaration. This certificate may be obtained from the Salaries office - Tel. 73904.
  3. Any other income from a French source must be declared in the relevant boxes.
  4. State under the heading 'autres renseignements' on the last page of the declaration form the duration of your contract with CERN ('Résident permanent de nationalité xx - Contrat CERN du xx au xx).
  5. Under its present rules and regulations, the Organization cannot reimburse the tax payable on this income from CERN.

The CERN Management considers that the tax position in France of the members of the personnel to whom the present paragraph applies may change as a result of the current discussions on this subject with the French authorities, but it is not in a position to state at this stage when such changes might occur. All relevant information on this subject will be published as soon as possible in the Weekly Bulletin and/or on the Human Resources Division website. Any members of the personnel who might be affected are invited to call 72838 in order to have their names registered.

2.3 Non-French members of the personnel who are not permanent residents

2.3.1 Non-French members of the personnel who are not permanent residents and hold a CERN contract of a duration equal to or greater than 6 months

Non-French members of the personnel, who are not permanent residents, residing in France for more than six months in 2001, in receipt of a remuneration or payment from CERN and holding a contract with the latter of a duration equal to or greater than 6 months, are required to complete an income declaration form even if they have no income other than their CERN remuneration/payment. may be taken into account in their assessment for local tax.

  1. Complete the first two pages of the declaration form.
  2. Do not state your CERN income on the form.
  3. Any other income from a French source must be declared in the relevant boxes.
  4. State your nationality under the heading 'autres renseignements' on the last page of the declaration form ('Fonctionnaire CERN de nationalité .....').

2.3.2 members of the personnel who are not permanent residents and hold a CERN contract with a duration of less than 6 months

Non-French members of the personnel, who are not permanent residents, months in 2001, in receipt of a remuneration or payment from CERN and holding a contract with the latter of a duration of less than 6 months are not liable for income tax in France and are therefore declaration form.

3. Members of the personnel not in receipt of any remuneration or payment from CERN

Members of the personnel with the status of User or Unpaid Associate (not in receipt of a subsistence allowance) are subject exclusively to ordinary French law and may not invoke or derive benefit from the exceptional arrangements set out in § 2 above.

3.1 Users and Unpaid Associates

in receipt of remuneration organisation based in France

3.1.1 Users and Unpaid Associates in receipt of remuneration from a French institution and residing in Switzerland

Users and Unpaid Associates who receive a remuneration from a French institution and reside in Switzerland must send a duly completed 2001 income declaration form to the 'Centre des Impôts des non-résidents' - 9 rue d'Uzès - 75002 Paris by Tuesday 30 April 2002 at the

3.1.2. Users and Unpaid Associates in receipt of remuneration from a French organisation and residing in France

Users and Unpaid Associates who receive a remuneration from a French institution and reside in France are subject to ordinary French law and must send a duly completed 2001 income declaration form to their local tax office.

3.2 Users and Unpaid Associates in receipt of remuneration from an institution based outside France who resided in France for more than six months in 2001

Users and Unpaid Associates in receipt of a remuneration from an institution established outside France who resided in France for more than complete an income declaration form.

  1. Complete the first two pages of the declaration form, writing 'CERN' in the bottom right-hand corner of the first page.
  2. Any income from a French source must be declared in the relevant boxes.
  3. Write under the heading 'autres renseignements' on the last page of the declaration form: 'utilisateur/attaché non payé au CERN, de nationalité ..... (your rémunéré par ... (name and address of your funding institution). Imposable en ....(the State where you are liable for income tax)'.

The French tax authorities reserve the right at a later date to require such persons to provide proof of tax payment in another country.

II - Payment of the tax levied on CERN remunerations and payments

The portion of tax under the heading 'Remboursable par le CERN' on the tax assessment notice is paid directly by CERN to the relevant tax office.

  • If you have already paid this portion please inform the Salaries Office, Finance Division, in writing.
  • If the words 'Remboursable par do not appear on your tax assessment notice, please inform Human Resources Division immediately - Tel. 72838.

III - Provisional installments of members of the personnel who took up their duties in 2001

The procedure for payment by provisional installments does not apply to the tax on the remuneration and payments made by CERN to members of the personnel who took up their duties before 1 July 2001.

IV - Staff Members who retired in 2001

The portion of tax under the heading 'Remboursable par le CERN' on the tax assessment notice is paid directly by CERN to the relevant tax office.

  • If you have already paid this portion please inform the Salaries Office, Finance Division, in writing.
  • If the words 'Remboursable par le CERN' do not appear on your tax assessment notice, please inform the Human Resources Division immediately - Tel. 72838.

V - Exchange rate for 2001

For 2001, the CERN certificates of remuneration have been drawn up in French francs at the average annual exchange rate of FF 4,177 for 1 CHF (0,64 euro for 1 CHF)

List of information desks organised by the French tax authorities

Ain :

  • CDI de Bellegarde: Monday > Friday 8.30 a.m. to 12 and 1.30 to 4 p.m.

Haute-Savoie :

  • Centre des d'Annemasse : Please contact 04 50 43 91 50
  • Centre des Impôts de Thonon: Please contact 04 50 26 79 00
  • Centre des Impôts d'Annecy: Please contact 04 50 88 40 00


Human Resources Division
Tel. 72838 (*)

(*) Please note that this telephone number is obsolete


by Human Resources Division