French Dividend Withholding for RESIDENT

Question related to tax for French dividend companies. I know that T212 charge a 28% withholding on dividends for non-residents as the French government is doing so.

But is it normal that even French residents are also deducted from these 28%? We are supposed to be paid the full dividend amount then we pay our tax at the end of the year to the French government. How can we fix this?

Thank you.

There was discussion previously, maybe it clarify your query.

From my view, it would require T212 to handle some administrative stuff, however not sure if this is in pipe or plan.

Thanks but it seems the discussion was around non-residents.

My question is for french residents that should receive the full dividend amount without any withholding.

Well I am not expert, but from the person who wrote in detail, I get different opinion.

French dividend withholding tax consists of 2 separate taxes which together come to a total of 30%:
A) an income tax of 12.80% ( impĂ´t sur le revenu )
B) a social contribution tax of 17.20% ( prélèvements sociaux )

Every individual shareholder is liable to pay A regardless of where they reside

However only French tax residents as well as tax residents of countries which are considered non-cooperative by French tax authorities are liable to pay B

Maybe @bob24 could help.

Since I am being called, here are my 2 cents :slight_smile:

Dividend taxation rules for French tax residents are described here on the French tax authorities’ website: Fiscalité des particuliers | impots.gouv.fr

Specifically, and again I am directly quoting the tax authorities: “Pour les résidents : le PFU au taux global de 30 % (12,8 % au titre de l’impôt sur le revenu et 17,2 % au titre des prélèvements sociaux) s’applique notamment sur les dividendes, les intérêts et les plus-values de cession de valeurs mobilières.”

Translated into English: For residents: a total withholding tax of 30% (12.8% related to income tax and 17.2% related to social contributions) is applied to dividends.

So tax residents in France are to expect a 30% withholding tax on dividends paid to them by French corporations.

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Cheers. :beers: :slight_smile:

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OK perfect. I thought taxation was at end of the year. In fact, it is at withholding level.

So now I am confused. Why T212 is withholding 28% instead of 30%? What should I do with the remaining 2%?

Thank you.

The 28% thing, I don’t really get.

If you speak French you might want to have a look into this and make sure you are not paying the tax twice: Récupération de retenues à la source prélevées à tort sur des dividendes de source française versés à des résidents de France

(what I get from this link is that 28% is what French entities have to withhold when paying dividends to a foreign broker, but this is different from the 30% withholding tax individuals have to pay it can create confusion with individual shareholders ending up paying both.

That is exactly that. Trading 212 is being charged 28% as it is a non-French entity to which a French company pays a dividend. Note that this rate will decrease to 26,5% in 2021 and 25% in 2020.

From the link shared by bob, I understand that you can claim back the 28% you paid. I am not French myself though, so I’d suggest a quick double-check maybe with the authorities to make sure.