The welfare debt repayment levy applies to five distinct types of income: income from economic activity and alternative income, income from property, investment income, income from the sale of precious metals, jewellery, works of art, collectors' items and antiques and, lastly, gaming stakes and winnings.
Unlike the general social welfare contribution, there are no exemptions from the welfare debt repayment levy or reduced rates for welfare contributors who are in receipt of certain forms of alternative income or with a low income.
1. Income from economic activity and alternative income:
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In general terms, all income that is subject to general social welfare contributions is also subject to the welfare debt repayment levy.
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This income chiefly comprises salaries, wages, bonuses, benefits in kind, monetary benefits, compensatory payments, welfare benefits and gratuities received in the performance of an economic activity or in consideration of work performed. Such income is subject to the repayment levy on the same conditions and basis as general social welfare contributions. On the other hand, certain allowances or benefits which are exempt from welfare contributions are subject to the repayment levy; foremost among these are family allowances (with some exceptions) and personal housing benefit.
2. Income from property:
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Income from real estate;
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Contributory life annuities;
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Income from movable capital;
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Value added to immovable assets;
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Capital gains and profits accruing from deals in financial instruments and commodities in the futures market, in negotiable options and in bond options which are subject to income tax at a proportional rate.
3. Investment income:
4. Some welfare benefits which are not subjet to the general social welfare contributions are subject to the welfare debt repayment levy :
5. Other income subject to the repayment levy:
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Income from privately let furnished accommodation;
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Non‑commercial income not subject to the repayment levy as income from economic activity or alternative income;
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Earned or alternative income from abroad;
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Income of indeterminate origin subject to income tax under Article L69 of the Code of Fiscal Procedure (" Livre de procédures fiscales ");
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Income which is taxable in France under an international convention for the avoidance of double taxation and from which the levy on earned or alternative has not been deducted.
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