“Multi-supports” life insurance policies

June 19th 2015

Coming progressively to the end of social contributions on the revenues generated by euro funds of “multi-supports” life insurance policies?

The rules of taxation on social contributions of “multi-supports” life insurance policies (i.e., those that include a part in euros or in currencies and another in shares) were modified by Article 22 of the finance law for 2011.

Since July 1, 2011, the part of the revenues of the multi-support policies expressed in euros or in currencies is subject, each year, to social contributions (the current rate of which is 15.5%) at the time of their date of registration.

Until then, the subjugation to social contributions of the revenues of these “multi-support” life insurance policies (generated both by the supports in euros or in currencies as by supports in accounting currency) would take place only when the policy was terminated.

The Conseil d’Etat, in a ruling dated June 17, 2015 (no. 390001), transmitted a petition for preliminary ruling on constitutionality (hereafter “QPC”) to the Conseil Constitutionnel relating to the constitutionality of the provisions of Article 22 of the finance law for 2011, i.e. on the taxation rules for the social contributions of “multi-supports” life insurance policies.

For the taxpayer at the origin of this QPC, “these provisions disregard the principles of equality in terms of tax law and the equality in terms of public charges guaranteed by Articles 6 and 13 of the Declaration of Human and Civil Rights, insofar as the income subject to tax on such basis is not definitively acquired by the tax payer on the date of its taxation”.

The decision of the Conseil Constitutionnel is eagerly awaited.

Céline Thimonier