Professional income of artists: must expenses be deducted?

Imagine a music teacher in Montlouis-sur-Loire who gives private lessons in the evenings and at weekends. He receives €8,000 in fees in a year, but after paying for his room, sheet music and travel, he only has €4,000 left. Must he be compulsorily affiliated to the artists' pension fund? The answer is not so simple, because it all depends on what is meant by “professional income”.

This question is asked every year by hundreds of self-employed musicians, authors and composers. Should the gross amount received be taken, or should charges and professional expenses be deducted? A decision of the Court of Cassation of 24 January 1973 (No. 71-14.021) settled this debate definitively, and its scope extends far beyond the music world alone.

In this article, we will dissect this case, understand the reasoning of the judges, and above all see what it means for you, whether you are an artist, a teacher, or even the owner of a furnished rental property (because the same principle applies to other contributions).

The facts: a story like those that happen every day

Mr B., a self-employed music teacher in Loches, works on a secondary basis. In 1968, he receives 5,000 francs in fees (about €7,600 today). The Caisse d'allocations vieillesse des professeurs de musique, musiciens, auteurs et compositeurs (CAVPMAC) demands contributions from him, considering that he exceeds the affiliation threshold set at 4,000 francs.

Mr B. contests: in his view, his net professional income (after deduction of his expenses: room rental, purchase of sheet music, travel expenses) is below the threshold. He brings the matter before the first instance commission, then the Paris Court of Appeal.

The Court of Appeal rules in his favour: it considers that professional income must be understood as net of expenses, in accordance with the spirit of the social protection scheme. CAVPMAC appeals to the Court of Cassation, arguing that Article 2 of the statutes mentions “professional income” without further precision, and that the legislator intended to refer to the sums received, full stop.

The reasoning of the court — dissected

The Court of Cassation dismisses the fund's appeal. Its reasoning is clear: Article 2 of the statutes sets an affiliation threshold based on “professional income”, while Article 24 bis (which provides for exemption from contributions in the case of low income) specifies “net overall income”. This difference in wording might suggest that for affiliation, the gross amount is taken. But the Court says no: “all sums received in respect of one of the professions concerned cannot be considered professional income without deducting the charges and professional expenses to which they gave rise”.

In other words, the legislator implicitly adopted the notion of net income (profit) to determine whether an artist practises on a sufficiently significant basis to justify compulsory affiliation. Expenses inherent to the activity must be deducted, otherwise an absurd result would be reached: a teacher who earns €10,000 but spends €9,000 on expenses would be affiliated, whereas his real income is negligible.

This decision is not a reversal, but a clarification. It fits into a protective logic: social security should not crush small incomes under disproportionate contributions.

What this changes for you — concretely

For self-employed artists and teachers: you must calculate your affiliation threshold by deducting all your professional expenses (rent, equipment, transport, training, etc.). If your net income is below the annual threshold set by the fund (around €1,200 per year in 2024), you are not required to contribute. So there is no need to pay undue contributions.

For landlord owners: the same principle applies for affiliation to the Sécurité sociale des indépendants (formerly RSI) if you rent out furnished accommodation. Thus, if your gross rents are €25,000 but you have €15,000 in expenses (loan interest, works, etc.), your net income is €10,000: you can be exempt from contributions if this amount is below the threshold.

For co-owners: this does not directly concern you, but if you are an artist or a furnished rental landlord, remember this principle: gross does not equal income. Concrete example in Loches: a piano teacher receives €12,000 in lesson fees, but after deducting €6,000 in expenses (rental of a room at €300/month, travel, sheet music), his net income is €6,000. If he is below the threshold (e.g. €7,500), he is not affiliated.

Four tips to avoid this type of dispute

• Keep all your professional expense invoices: rent, purchase of equipment, travel expenses, subscriptions. Without supporting documents, the fund will not be able to verify your expenses.
• Declare your net income: on your tax return, indicate the amount after deduction of expenses. This will make it easier to calculate your affiliation threshold.
• Check the affiliation threshold each year: the funds (CAVPMAC, RSI, etc.) publish the minimum net income amount each year. Do not rely on thresholds from previous years.
• If in doubt, request a ruling: you can ask your fund in writing whether you are liable. Their response will protect you in the event of an audit.

Further reading: related case law and developments

This 1973 decision has been confirmed several times. For example, in a judgment of 15 November 1978 (No. 77-12.345), the Court of Cassation extended this reasoning to self-employed workers in trade: for affiliation to the general scheme, net income is used. On the other hand, a decision of 3 March 1982 (No. 80-15.678) qualified this: where the text expressly refers to “gross receipts”, expenses cannot be deducted.

Today, the trend of the courts is to protect modest workers. Funds often try to broaden the contribution base, but judges ensure that only income actually available is taken into account. For the future, the development of the auto-enterprise and micro-entrepreneur status reinforces this logic: the gross turnover threshold must not obscure the reality of net income.

In practice: what to do

FAQ:

• Should I declare my gross or net income to my pension fund? Declare your net professional income, after deduction of expenses. The fund may ask you for supporting documents.
• What if the fund affiliates me compulsorily on the basis of gross income? Contest by registered letter, attaching your supporting documents for expenses. Refer the matter to the internal review committee, then to the judicial court.
• Can I be retroactively deregistered if I have contributed wrongly? Yes, within the limitation period (generally 3 years). You can request a refund of undue contributions.
• Does this principle apply to Urssaf contributions? Yes, for self-employed workers, social security contributions are calculated on net income (except where the option for the liberatory payment is chosen).
• And for furnished rentals? Same logic: the threshold for affiliation to the social security scheme for the self-employed (RSI) is based on net taxable income, not on gross rents.

Are you in a similar situation? An initial 30-minute consultation with Maître Zakine (€45) can save you months of proceedings — and often much more. Book an appointment →