France: Exemption of non-European Union Collective Investment Vehicles (CIVs) - New guidelines and RPPM form available
Clearstream Banking1 would like to inform customers that the French tax authorities (FTA) updated their guidelines on the exemption of withholding tax on French source dividends paid to certain foreign CIVs.
The updated guidelines clarify the criteria for applying this tax exemption, partially or in full, to CIVs established outside the European Union.
the new RPPM BOI-FORM-000089 must be used by eligible non-European Union CIVs (non-EU CIVs) to obtain a refund on French withholding tax.
Since 17 August 2012, beneficial owners that have collective investment in transferable securities (UCITS) established in a European Union Member State and governed by Directive 2009/65/EC of 13 July 2009 (the “UCITS IV” directive) or certain alternative investment funds (AIFs) established in the European Union or a European Economic Area Member State and governed by Directive 2011/61/EU of 8 June 2011 (the “AIFM” directive), may obtain a full or partial exemption of French withholding tax at source on certain dividend payments.
On 7 December 2016, the FTA updated their guidelines, including the eligibility criteria of non-EU CIVs. Please refer to Announcement A17001, dated 6 January 2017, for additional details.
On 12 August 2020 the guidelines were further updated to clarify the eligibility criteria of non-EU CIVs. To be eligible, non-EU CIVs must meet the conditions of Article 119 bis, paragraph 2, of the French Tax Code (FTC) and satisfy all the criteria to prove their comparability with the French CIVs. This justification is brought to the FTA with the new self-declaration RPPM BOI-FORM-000089 accompanied by the supporting documentation.
Impact on customers
Non-EU CIVs who obtained a refund of French dividend withholding tax through the contentious reclaim are eligible to relief at source until 31 December of the second year following the date of the decision of the FTA.
With the new guidelines, some changes occurred in the documentation requirements.
The new self-declaration RPPM BOI-FORM-000089 is only available in French. An English version is expected to be published shortly.
Filing a contentious reclaim to the FTA
To benefit from an exemption of withholding tax, non-EU CIVs must continue to address a refund directly to the FTA at the following address:
Direction des Impôts des Non-Résidents (DINR)
10, rue du Centre
The contentious reclaim file must include:
- The new RPPM BOI-FORM-000089; and
- All the supporting documentation as required by the FTA.
Important note: Clearstream Banking does not assist in that contentious reclaim process. Customers should seek the advice of their own tax advisors.
Obtaining a relief at source
Based on a positive decision from the DINR, non-EU CIVs can obtain a relief at source on distributions occurring between the date the FTA decision has been issued and 31 December of the second year following that decision, by providing the following documentation within the prescribed deadline:
- A copy of the repayment decision issued by the FTA;
- The new RPPM BOI-FORM-000089, duly completed and signed;
- A corporate action instruction via Xact Web Portal, CreationOnline or formatted SWIFT MT565 message;
- A per-payment detailed list of beneficial owners.
As clarified in the new guidelines, Clearstream Banking does not require the supporting documentation provided to the FTA to obtain the refund.
The relief at source documentation must be received at the latest, on record date minus one business day of the first dividend payment date to which it applies, by 09:00 CET.
The copy of the decision letter of the FTA must be provided together with the RPPM form and will have the same validity. Documents sent separately will be rejected.
For further details, please refer to the Market Taxation Guide - France.
For further information, please contact the Clearstream Banking Tax Help Desk or Clearstream Banking Client Services or your Relationship Officer.
1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.