Exemption from welfare contributions, necessary written proof
Monday, 04 July 2005
“If we understand correctly, exemption from certain welfare contributions is only possible if there is a contract with a European promoter or if there is a bilateral agreement with certain countries, provided one can prove that the foreign firm has been legally formed and it can prove it has retained its employees by producing a copy of its entry in the trade & companies register, or a sworn affidavit to that effect, form X or Y (E101, etc). In all honesty, we fear that this may simply boil down to their issuing a short statement on their headed notepaper to the effect that they pay welfare contributions in their country. Does this alone suffice?”
No.
When an employer based in a European Union member state seconds an employee to French territory with a view to delivering a service, the employee in principle remains registered in the social security, unemployment benefit and private pension systems of the state where his employer is based. This situation of secondment must be vouched for by a certificate of secondment (form E101).
Similarly, the social security, private pension and unemployment benefit contributions are not payable in France when the artist is a salaried employee of an employer based in a country having a bilateral agreement on social security with France. To benefit from the exemption, one must be able to produce the forms specified by such agreements (certificate of secondment) which prove that the salaried employee benefits from continued social welfare in the country of origin.
Continued coverage by the social security scheme of the country concerned can only be vouched for by the forms specified by the bilateral agreements on social security with France or by community regulations (E101) (fact sheet Foreign artist seconded to France under a sales contract entered into with an entertainment promoter based abroad ). These forms can only be issued by the relevant institutions in the country of residence.
A sworn affidavit is not considered equivalent proof, neither is any other type of certificate. Moreover, when the contract with the foreign firm exceeds €3,000, you are indeed required to ascertain that the company actually exists and seconds its employees lawfully (See Foreign artist seconded to France under a sales contract entered into with an entertainment promoter based abroad: the French promoter’s obligations and responsibilities ). Regardless of the country in which your contracting party is based, you must ask him to provide:
- Either documents proving that he is in order with regard to social security requirements (in particular a certificate of secondment);
- Or documents proving he is in order with regard to his tax position.
On the other hand, proof of registration in a trade register such as the Trade & Companies Register is not always required, because many countries do not have such a register.
