Equities - rates, eligibility, availability of relief etc. - France (securities held in CBF)

21.04.2020

Withholding Tax

Standard rate of withholding tax:28%aHolding requirements / restrictions:No

a. 30% until 31 December 2019.

The rate of withholding tax on dividends from French equities depends on the equity type, as follows.

Ordinary equities:

The standard rate of withholding tax on dividends from ordinary French equities is:

  • 28% for all undisclosed entities;
  • A 12.8% standard rate applies to foreign individuals.

Eligible beneficial owners are, upon submission of the required certification, entitled to relief at source via the simplified procedure.

French SCRs:

A 28% withholding tax rate is applicable to distributions from a Société de Capital Risque (SCR - a French venture capital company) to non-resident investors when derived from capital gains realised by the SCR issued from exempted portfolio, and that would benefit from the specific long-term regime if the shareholder were a French company.

The simplified procedure is not available for such distributions but a standard refund of withholding tax is available for eligible beneficial owners through Clearstream Banking.

Availability of relief

Click on the image for a larger view of the diagram showing the availability of relief at source and/or reclaim of withholding tax on income from French equities.

Eligible beneficial ownersRelief at SourceQuick RefundStandard Refund
Residents of Double Taxation Treaty (DTT) countriesYesYesYes
Foreign individualsYesYesYes
Foreign Collective Investment Vehicles (CIVs)YesYesYes
EU parent companiesYesYesYes
Not-for-Profit OrganisationsYesYesNo
Foreign exempt entitiesYesYesNo
Particular Foreign entitiesYesYesYes
French resident (direct customer)YesYesNo