Declaration of income for 2005

Information from the Legal Service and the HR Department

Information for members of the personnel residing in France

Following the introduction of the internal taxation of salaries and emoluments of members of the CERN personnel on 1st January 2005 (cf. Bulletin No. 48-49/2005), the French Finance Ministry has communicated the following information on the procedure for completing the 2005 declaration of income form, which must be returned by 31 May 2006 at the latest.

1. All members of the personnel^*) residing in France, whether or not they are of French nationality, are required to complete a declaration of income for 2005 according to the following instructions and to return a signed copy to their local tax office by 31 May 2006 at the latest.
   
   Members of the personnel should receive an income declaration form for 2005 at the beginning of May. Those who do not receive a form directly should obtain one from their local 'Centre des Impôts', Trésorerie' or 'Mairie', or download one from the Finance Ministry's website (www.finances.gouv.fr).
   
   
2. Under the heading 'Traitements, Salaires' in Part 1 of the form, members of the personnel must not indicate the amount of remuneration, payments and other financial benefits paid by CERN, which are now subject to internal taxation by the Organization.
   However, they are still required to declare any other income from a French source (e.g. income from real estate or movable assets), which continues to be taxable in France.
   Users and Unpaid Associates will continue to be liable for tax under ordinary French law on the remunerations paid by the institutions employing them. Their income tax position will be covered in a separate communication.
   
   
3. Members of the personnel should tick box FV in Part 8 of the form, 'Autres Imputations'. In the final box, entitled 'Autres renseignements', they are advised to state: 'Membre du personnel du CERN assujetti à l'impôt interne du CERN' (member of the CERN personnel subject to internal CERN taxation).
   
   
4. Members of the personnel should attach to their declaration the annual certificate issued by CERN in accordance with Article R IV 2.04 of the Staff Regulations.
   
   This certificate, which will be available shortly, will state the taxable amount of remuneration, payments and other financial benefits they have been paid by CERN in 2005 and the amount of internal tax levied by the Organization.
   
   
5. You are reminded that French nationals and those with permanent resident status in France will no longer be subject to the 'taux effectif' rule (cf. Bulletin No. 48-49/2005). This means that the French tax authorities will no longer take account of remuneration, payments and other financial benefits paid by CERN for determining the tax rate applicable to their other income.
   

As the Human Resources Department cannot replace the tax authorities for the handling of very specific cases, members of the personnel with such queries are requested to contact their local tax office directly.

*) Irrespective of the category of personnel to which they belong (cf. Article I 2.02 of the Staff Rules)

by HR Department