France: Decree on deadlines for claims relating to withholding tax adopted
LuxCSD1 informs clients that the French Government adopted Decree No. 2026-692 of 27 July 2026, repealing the reduced 1-year time limit applicable to claims relating to withholding tax provided for by article R. 196-1 of the Livre des procedures fiscales.
Effective
immediately
investors claiming a refund of withholding tax directly from the French tax authorities may benefit from the general two-years deadline.
Background
In its decision No. 500909 of 16 February 2026, the French Council of State (Conseil d'État) held that the specific limitation period applicable to claims relating to withholding taxes and levies under paragraph b of the second section of Article R* 196-1 of the French Book of Tax Procedures (Livre des procédures fiscales or FBTP) was contrary to the constitutional principle of equality before the law.
Under the disputed provision, taxpayers were required to submit claims by 31 December of the year following the year in which the withholding tax or levy was applied. This deadline was shorter than the general limitation period applicable to claims concerning other taxes levied on income of a similar nature, which allows claims to be filed until 31 December of the second year following the triggering event under the first section of Article R* 196-1 of the FBTP.
As a result, the Council of State instructed the Prime Minister to adopt the necessary regulatory measures within three months of the notification of the decision to remedy this unlawful situation.
Following this ruling, on 22 April 2026, the French tax authorities updated their administrative guidance by removing references to the shortened one-year claim deadline provided for in the second section of Article R* 196-1 of the FBTP.
On 29 July 2026, Decree No. 2026-692 of 27 July 2026 was published in the French Official Gazette (Journal officiel, No. 0175).
The decree implements the Council of State's decision by repealing the second section of Article R* 196-1 of the FBTP. Consequently, the reduced one-year limitation period previously applicable, in particular, to claims relating to withholding taxes and levies has been formally abolished and such claims are now subject to the general claim deadline set out in Article R* 196-1 of the FBTP.
Impact on clients
This change of law is for information purposes only and impacts the investors who claim the refund of withholding tax directly from the French tax authorities. LuxCSD cannot provide any legal advice with regard to this procedure. Please contact your tax advisor for further information.
The deadline for reclaims filed within LuxCSD has not changed and was already two years after the end of the calendar year in which the income payment was made.
Further information
Clients may contact the Tax Help Desk, Client Services or their Relationship Officer.
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1. LuxCSD refers to LuxCSD S.A., registered office at 42, Avenue J.F. Kennedy, L-1855 Luxembourg, registered with the Luxembourg Trade and Companies Register under number B-154.449.