The French government may be backtracking on the decision to raise taxes on French expatriates. The Minister of Action and Public Accounts, Gérald Darmanin, has indeed asked for the suspension of a decree allowing this increase in social contributions, which would pose a problem of equity.
This decree had aroused the anger of deputies representing the French abroad who found it unfair. This famous decree dates from December 30, 2017. It provides for an increase in social contributions for French expatriates. In fact, this increase makes it possible to pass on the increase in the CGS of 1.7 points, in force since January 1, on these expatriates.
The CSG or generalized social contribution contributes to the financing of social protection. This tax is paid by all persons residing in France. According to its detractors, this new tax would create a discrepancy to the disadvantage of French people living abroad. It would particularly affect the purchasing power of expatriates, who often receive small pensions.
Under pressure, Gérald Darmanin has therefore asked the Prime Minister, Edouard Philippe, to suspend him while he finds an alternative. The about-face of the Minister of Public Accounts was welcomed by the deputies representing the interested parties. Anne Genetet, the deputy of République en Marche, should work on a more equitable solution.