What You Need To Know About The French Tax On Health Insurance (TSA)

Author:Ms Amaya Chiavelli
Profession:TMF Group
 
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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...

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