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French Finance
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 25/05/2007, 8:11
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allanb
Joined on 04/09/2006
Posts 442
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Re: Treatment of Dividends
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 Mackyfrance wrote: | | We have our own company in the UK from which we receive dividends. Does this mean that in addition to paying corporation tax in the UK we also have to pay tax on it in France if the amount is above the 3050 euros threshold? |
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This is really several questions in one. It could be a lot more complicated than the simple case of a French tax resident receiving a UK dividend.
You are talking about your personal taxation (which may be affected by your resident status) and also the taxation of a UK corporation (which may be affected by the tax residence of the corporation, which in turn may be affected by where it is managed and where it does business...)
There are certainly some knowledgeable people on the forum, but I suspect you may need specialist advice on this one.
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20/05/2008, 15:02
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Grecian
Joined on 24/01/2007
West Yorkshire
Posts 87
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Re: Treatment of Dividends
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I have dragged this thread up again, as it is now tax season, 12 months on from the original thread.
Is anybody any the wiser if UK based investment trust and unit trust dividends qualify for the 40% deduction, and then eligible for the 3050 euros overall allowance, before any income tax is paid on the dividends. Having reread this thread, people were not too sure at the time of submitting their tax returns last year, so I am wondering if anybody now has definitive answers to the original questions.
As always thanks in advance for any information supplied.
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21/05/2008, 23:30
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lmc
Joined on 16/05/2008
Posts 26
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Re: Treatment of Dividends
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Hi Grecian
Dividends from a British source paid to French residents are taxable in France. However, when they have already been taxed at source in the UK, there will be a tax credit to the French resident under the French tax system.
Taxable in France so subject to the same tax system.
There are no cotisations on dividends. However, you do pay:
- un prélèvement social de 2 %,
- la contribution additionnelle au prélèvement social de 0,3 %,
- CSG (8,2 %) and CRDS (0,5 %).
As of 1 jan 2008, these are deducted at source.
Dividends are subject to income tax after:
- abattement of 40 % applied to an unlimited amount of money,
- then the abattement forfaitaire of 3 050 euros for a married or PACSd couple, or 1 525 euros for a single person.
The shareholder also benefits from a tax credit of 115 euros for a single person and 230 euros for a married couple.
Hurray! Some good news for a change!
Lisa
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30/05/2008, 19:42
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Grecian
Joined on 24/01/2007
West Yorkshire
Posts 87
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Re: Treatment of Dividends
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Just to say thanks for the info Lisa, we have been over in France sorting out our future, so apologies for not responding sooner.
As you say good news for a change. It also points to the fact that dividends are treated very favourably in France, tax wise, we may have to move some more cash over into bonds.
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30/05/2008, 21:43
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lmc
Joined on 16/05/2008
Posts 26
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Re: Treatment of Dividends
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I don't know if you are aware but with Credit Agricole you have the possibility of keeping your money in sterling and getting sterling rates of interest on it.
Might be interesting.
Lisa
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France Forum » Legal and Finan... » French Finance » Re: Treatment of Dividends
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