France–New Proc. Declaring Transfer Res. Outside France | KPMG | GLOBAL

France – New Procedures for Declaring Transfer of Residence Outside France

France–New Proc. Declaring Transfer Res. Outside France

In this report we cover the obligation of individuals leaving France who had been subject to French social security to declare their transfer of residence outside France to the relevant social security organization.

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In a change meant to combat social security fraud, individuals leaving France who had been subject to French social security will now be required to declare their transfer of residence outside France to the relevant social security organization.  The declaration will be made by filing new form S1105 within a month of departure.1  For employees, this declaration will be made to the Caisse Primaire d’Assurance Maladie, and is made under pain of penalty.

WHY THIS MATTERS

Employers sending employees abroad will need to make them aware of their obligation to notify the authorities of their departure, if the employees were previously contributing to the French social security system. 

Further Details

Employees who remain covered by the French mandatory social security system (by virtue of EU regulation 883/2004 or a bilateral social security agreement) do not need to complete the form.

Employees who are no longer insured on a mandatory basis in France must also surrender their health insurance card (Carte Vitale) and European Health Insurance Card.  However, if they are covered on a voluntary basis by the Caisse des Français de l'Etranger, they should keep their Carte Vitale in order to facilitate reimbursements of health-care costs.

Failure to notify the authorities of a change of situation with a view to obtaining social benefits may result in financial penalties in accordance with Article L. 114-17-1 of the Social Security Code.  These vary depending on the gravity of the offence.

Fraud or misrepresentations committed in order to obtain benefits can result in criminal prosecution.

FIDAL NOTE

It will be important for employees and their employers to understand the new requirement, including whether the form needs to be completed and whether the Carte Vitale needs to be surrendered.  On these matters it may be prudent to seek advice from a qualified tax professional.  It will also be important to understand the impact this may have on an individual’s (or family member’s) circumstances, particularly with regards to the right to benefits under the French social security system.

The information contained in this newsletter was submitted by FIDAL in France.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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