SOCIAL SECURITY
C‑623/13, Ministre de l’Économie et des Finances v Gérard de Ruyter, 26 February 2015
The European Court of Justice (ECJ) has ruled that French legislation which requires foreigners who reside in France and who are employed by a company located in another EU Member State – and who are thus submitted to the social security scheme of that Member State, to also pay contributions to the French social security, is incompatible with EU Regulation 1408/71 on the application of social security schemes.
In the present case, a Dutch citizen resident in France and employed by a Dutch company brought an action because the French authorities imposed him a double taxation on his income from assets, notwithstanding that he was already being subject to similar levies in the Netherlands.
The French supreme administrative court (the “Conseil d’Etat” – CE) who had ruled on the case asked the ECJ whether the French legislation was compatible with Regulation 1408/71 on the application of social security schemes to employed persons and the freedom of movement workers.
The ECJ first stated that the levies on income from assets imposed by French authorities enter within the scope of the Regulation. Then, the ECJ stated that in order to ensure the free movement of employed people within the EU and the respect of the principle of equal treatment, the Regulation had established a system of coordination concerning the determination of the legislation applicable to employed persons who make use of their right to freedom of movement.
Therefore, the ECJ stated that the requirement according to which those who, among the residents of a Member State, are insured under the social security scheme of another Member State, should also pay their contributions to the social security scheme of the Member State of residence, was an infringement to the principle of equal treatmen
