France – Procedure simplified for WHT exemption on dividends paid to qualifying EU / EEA funds

News

France – Procedure simplified for WHT exemption on dividends paid to qualifying EU / EEA funds

10 April 2017

Operational Tax News

On 1 March 2017, revised guidelines with immediate effect have been published by the French tax authorities in order to simplify the procedure of applying for the French withholding tax exemption on dividends, applicable to qualifying EU / EEA investment funds.

Impact

The procedure will facilitate the application to relief at source exemption and reduce the number of French tax reclaims submitted by the EU / EEA funds to the French tax authorities.

Previous procedure

On the former guidelines, the application of the withholding exemption required the provision of specific documentation before the payment of the income.

New changes

The new guidelines allow for the withholding tax exemption to be applied upfront without providing the all appropriate documents. However, to receive such exemption, the custodian must:

  • Have in possession the exemption form
  • Inform the paying agent the amount of dividends to be paid before the payment date


The custodian will then be obliged to provide the information within 3 months of the also dividend payment date.

For more details, please refer to the Tax Alert from Deloitte France.

If you have any questions regarding the above, please do not hesitate to contact us.

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