29 July 2016 French 3% dividend tax is referred to French Constitutional Court and CJEU France introduced in 2012 a 3% tax on dividends or deemed dividends distributed by entities subject to French corporate income tax (including French branches of foreign companies that are deemed to distribute their annual profits). The French Administrative Supreme Court (FASC) recently asked the Court of Justice of the European Union (CJEU) whether the 3% distribution tax is compatible with Articles 4 and 5 of the EU Parent-Subsidiary Directive. The FASC also asked the French Constitutional Court (FCC) whether the exemption for distributions made within a French tax consolidation violates the French Constitution. These referrals may allow EU and non-EU groups with French companies to claim the refund of the 3% distribution tax paid in previous years. A Tax Alert prepared by EY's Global Tax Desk Network, and attached below, provides additional details. Document ID: 2016-1300 |
