In brief: The CSG is the generalized social contribution, a social contribution within the French system that applies to several categories of income.
The definition of the CSG
CSG stands for generalized social contribution. It concerns, in particular, earned and replacement income, income from assets and investment income.
Earned and replacement income
Earned income is linked to carrying out a professional activity. Replacement income includes, in particular, certain pensions and allowances.
For this income, the CSG may be withheld at source by the employer or, for certain benefits, by the organization paying them.
Income from assets and investment income
The CSG also applies to income from assets and investment income. These two categories are subject to separate rules:
- income from assets falls under Article L. 136-6 of the Social Security Code;
- investment income falls under Article L. 136-7 of the same code.
You must therefore identify the category of income concerned in order to determine the rules applicable to the CSG.