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What are ‘Cerfa’ forms and why does the French government want to scrap them?

France's finance minister announced on Wednesday that the government will 'get rid of' thousands of complicated French forms - here's what that is likely to mean in practice for everyday life.

What are 'Cerfa' forms and why does the French government want to scrap them?
France's Minister for Economy and Finances Bruno Le Maire leaves after the weekly cabinet meeting at the presidential Elysee Palace in Paris on March 6, 2024. (Photo by STEPHANE DE SAKUTIN / AFP)

France’s finance minister, Bruno Le Maire said during an interview with French newspaper Le Monde on Wednesday that he wanted to ‘simplify’ French bureaucracy by getting rid of certain administrative forms called ‘Cerfa’ documents.

The finance minister said that his goal was the elimination of all Cerfa forms by 2030, and that this would be part of his overarching plan to decrease French spending.

As for why – Le Maire said that this move would help to ‘lighten the mental burden’ that weighs on entrepreneurs.

“Complexity has a staggering cost in terms of jobs and hours worked,” he told the French press.

What are Cerfa forms?

Cerfa is an abbreviation for Centre d’enregistrement et de révision des formulaires administratifs (Centre for the registration and revision of administrative forms). These are are official French documents filled in either by an individual or a company. They are later sent into public authorities.

Cerfa forms are required for numerous formal procedures that are outlined by French law.

From termination of employment to vehicle registration and planning permission, plus requesting French citizenship, Cerfa documents are a large part of French life.

There are 1,800 different types of Cerfa documents. Only 600 of those forms are for private individuals, while the remaining 1,200 pertain to businesses.

“Complexity has a dizzying cost in terms of jobs and hours worked,” explained Bruno Le Maire, explaining that it is necessary to “reduce the mental load” that weighs on entrepreneurs. Thus, the government intends to eliminate all Cerfas, of which there are 1,800, within seven years, including 1,200 for businesses alone.

Non-EU foreigners living in France are likely familiar with Cerfa forms – as they are the documents listing the requirements for different French visas and residency cards.

A Cerfa form usually has five digits associated with it – it looks like: ‘Cerfa XXXXX’. Occasionally, there may be two additional digits added on to offer further specification.

For example, a long-stay visa application would be done via a ‘Cerfa 14571-05’. Meanwhile, the generic tax declaration form is ‘Cerfa 10330’.

Some of these processes have moved online in recent years. 

What does he mean by ‘getting rid of them’?

Le Maire told Le Monde that his goal is to see 80 percent of Cerfa documents pre-filled by the administration by 2026.

This is already possible for several French administrative forms – including the online version of the annual income tax declaration. If you declare online, the form will ‘remember ‘ your answers from last year and will be already mostly filled out, requiring you only to check the details and amend anything that has changed.

So ‘getting rid’ of the forms might be an overstatement, but simplifying them is more likely.

“The administration will make it clear to users what data they already have, and they will only ask them for the information that is missing,” Le Maire explained.

The finance ministry elaborated to Franceinfo later that the government’s aim is to move more procedures online, with paper forms remaining available for those who request them.

Le Maire said that the administration will first “map out the 1,8000 forms, and find a way to improve them before substituting them.”

The finance minister also discussed simplifying the existing commercial law in an effort to make things less complex for companies.

“No one can know all of the 7,000 article of the commercial code (the law regulating all commercial activity in France), so everyone ignores it,” he told Le Monde.

“I propose that Éric Dupond-Moretti (the justice minister) and I bring together lawmakers, as well as legal and trade specialists, to cut the commercial code in half by 2027. 

“My administration will use artificial intelligence to help adapt the information to the specificities of businesses today,” he said.

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LIVING IN FRANCE

Are Canadian pensions taxed in France?

If you are considering retiring to France, you might be wondering whether you will still be able to access your Canadian pension and if it will be subject to French taxes. Here is what you need to know.

Are Canadian pensions taxed in France?

Before going any further, it is worth noting that this article is meant to give an overview of the pensions situation for people with Canadian pensions. It does not replace professional financial advice, and Canadians looking to retire in France should still seek out expert financial assistance as needed.

The first step is to determine whether or not you are a tax resident in France (you can look through our guide). All tax residents must fill out a yearly tax declaration, and they must report all global income, even if it is not subject to tax in France. 

You should also consider if you have a pension from another country besides Canada, as different rules may apply based on that country’s bilateral tax treaty with France. Here is the situation for British, American, and Australian pensions, and here is an overview of the system.

Where is my pension taxed?

In Canada, the pensions system includes multiple tiers of public and private schemes, but luckily the double tax treaty between Canada and France is explicit about where pensions are taxed.

The Local spoke with Isaac Barchichat, a registered CPA in France, Canada and the USA to understand the situation for Canadians in France. He is a managing partner at Monceau CPA, an international accounting firm based in Paris with offices in the US and Canada.

He told The Local: “Tax treaties usually follow the OECD model, which means that Article 18 is usually focused on pensions.

“Article 18 for the Canada-France treaty is very similar to the USA-France treaty. This means that pensions are taxed in the country that they are issued in,” he said.

As a result, any Canada-based pension – whether that is the Old Age Security plan, the CPP (Canada Pension Plan) or QPP (Quebec Pension Plan), or a private personal or employer plan (such as Registered Retirement Savings Plans, or RRSPs) – would be taxed in Canada, not France.  

Barchichat explained that Canadians in France should still declare their pension income in France. Like Americans, they will receive a tax credit from France attesting that they have already paid tax in Canada on their pension.

“People should still maintain proof that the pension was already subject to tax, in case of an audit,” he added.

Barchichat also recommended that Canadians resident in France can make use of the ‘mention expresse’ section in their French tax declaration.

“Sometimes French local tax authorities fail to assess foreign income properly. Using the ‘mention expresse’ allows you to specify to French tax authorities Article 18 from the tax treaty to ensure that they process your documents properly,” he advised.

All of this being said, Canadians should beware that their pension income could still count towards your total household income in France, even though it is not taxed here. As a result, it could end up pushing you into a higher tax bracket.

What about social charges?

In addition to taxes (impôts), France also requires people to pay social charges (prélèvements sociaux) on income. However, only specific types of income can be considered for social charges, such as the CSM charge (PUMa) for healthcare. 

The general rule is that pensioners and their spouses do not have to pay the CSM charge, but France specifically exempts people who have a pension from France, the EU, the EEA and the UK (people with S1 forms), as well as their non-working spouses.

There is some debate over whether American and Canadian private pensions ought to be treated as a pension (and therefore exempt from CSM) or as investment income (which can attract CSM charges). 

When it comes to Americans, tax expert Jonathan Hadida from HadTax told The Local: “Under the principle of equality amongst taxpayers, URSAAF has treated most US pensions/IRA distributions/401(k) distributions akin to a French/Swiss/European pension and have therefore exempted Americans with pension income.”

“I have called URSSAF, and I was told by the representative that they should be paying for PUMa. But in practice, I have not seen many American pensioners charged for it.”

It is likely that similar standards are applied to Canadians. 

Barchichat, who is licenced in both the US and Canada, said that in his opinion neither American nor Canadian pensioners should be charged for prélèvements sociaux

“If this happens, it is a mistake by tax authorities”, he added. You can learn more about contesting a CSM charge here.

READ MORE: Cotisations: Why you might get an unexpected French health bill

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