What is the tax on dividends in France?
Dividends paid in 2007 to shareholders resident in France are used as a basis for calculating taxable stock income. Dividends are first eligible for an allowance of 40% with no upper limit. Then, a second allowance is applicable: €3050 for a couple filing jointly or €1525 for a single person, widowed, divorced or a couple filing separately. After these two allowances, dividends are subject to the sliding income tax scale applicable to the year they are received. Dividends are also subject to a tax credit equal to 50% of the amount of dividends before allowances are granted and capped annually at €230 for a couple filing jointly and at €115 for a single person, widowed, divorced or a couple filing separately. Before allowances, dividends are subject to social deduction of 11%.
Dividends paid in 2008 to shareholders resident in France are included in the calculation base for income taxation, or, on option, to a standard tax rate of 18% + 12.1% of social deductions). Dividends are first eligible for an allowance of 40% with no upper limit. Then, a second allowance is applicable: €3,050 for a couple filing jointly or €1,525 for a single person, widowed, divorced or a couple filing separately. After these two allowances, dividends are subject to the sliding income tax scale applicable to the year they are received. Dividends are also subject to a tax credit equal to 50% of the amount of dividends before allowances are granted and capped annually at €230 for a couple filing jointly and at €115 for a single person, widowed, divorced or a couple filing separately. Before allowances, dividends are subject to social deduction of 12.1%.
