The scope of the French TSA (tax on health insurance) is quite broad, covering all premiums or contributions paid to French or foreign insurance companies, mutual unions or related companies covering health risk in France.
Until 1 January 2016, French TSA was included in the French IPT declaration. Therefore insurance companies that paid IPT on health insurance before this date must ask for a TSA registration.
The scope of the French TSA (tax on health insurance) is quite broad, covering all premiums or contributions paid to French or foreign insurance companies, mutual unions or related companies covering health risk in France. The tax is administered by URSSAF; the department responsible for Social Security in the country.
As is customary across Europe, non-resident companies acting on a Freedom of Services basis have the same obligations as domestic companies in terms of taxation and contributions. French Law states many specific arrangements for the calculation of taxes on health insurance premiums:
TSA applicable rates
- TSA applicable rates depend on the type of insurance contract signed.
- Joint and responsible guarantees: 13.27%
- Joint and responsible guarantees for agricultural operators: 6.27%
- Per Diem payment (joint guarantees): 7.00%
- First Euro contract: 14.00%
- Joint contracts relating to group: 6.27%
- Non-joint and responsible guarantees: 20.27%
- Joint and responsible agricultural guarantees: 20.27%
- Per Diem payment (non-joint): 14.00%
The above categories are clearly designed with the specifications of French Health Insurance legislation in mind. For non-resident insurers underwriting either Health insurance, or mixed covers including Health, the task is to establish which of these categories their policies fall into. It could be that there are several possibilities depending on the type of cover in place.
French Insurance Premium Tax payments
TSA quarterly declarations and payments are due on the last day of the month following the end of a quarter. A yearly declaration is also due on the 30th of June of the following year.
Foreign companies covering health risks in France must appoint a Fiscal Representative responsible for the calculation, filing and payment of the TSA. The French Representative must be a French established company with a "high level of taxpayer honesty" to use URSAFF wording. Over the last few years, TMF Group has worked closely with our clients and the authorities to develop a robust process for the calculation and filing of taxes on Health Insurance in France. Our co-ordination centre of IPT specialists in the UK work together with our local experts in France to ensure that our clients are compliant with the requirements. TMF France works closely with URSSAF to reach the appropriate outcome in the event of any query, and the shared knowledge and experience is invaluable to our clients.
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TMF France's expert team can assist companies with temporary or permanent operations in the country, to meet their tax – including TSA – reporting deadlines, and file correctly with the relevant authorities.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.