Header Image

French Tax System

Due to the yearly evolution of the tax system, it can be quite difficult to understand what has been changed, added or deleted. Some basic information has been given in the section below. However, this may not match your personal situation and must not be seen as financial advice or an analysis of Technip. For non-French resident, we advise you to contact your financial advisor.

Dividends taxation for 2014 income

2015 tax filing

  • Gross dividends received in 2014 by shareholders who are tax resident in France are subject to social contributions (15.50%) and income tax payable partly through a withholding tax of 21%.
  • The withholding tax is an advance payment of income tax owed in respect of 2014 income and payable in 2015.
  • In 2015, in order to determine the final tax liability on the dividends received in 2014, the dividends basis is reduced by 40% and the progressive tax scale is applied.
  • The amount obtained is then compared with the withholding already paid to determine the amount of tax still to be paid. If the 21% withholding tax exceeds the tax due, the balance will be refunded by the State.
  • However, taxpayers with lower incomes may be exempt from the withholding tax. These include taxpayers with taxable household income in the previous year of less than €75,000 for married couples or €50,000 for single, divorced or widowed individuals. The exemption request must be made before November 30 of the year prior to the dividend payment. Thus, a request made in 2015 will only apply to dividends paid in 2016.

The information provided above is provided as an illustration. It does not provide details of the specific regulations that may apply to your particular case and should therefore not be construed as legal or tax advice, or as an opinion issued, or a recommendation made by Technip. We recommend that you contact your financial institution for further information.

Capital gains taxation for 2014 income

2015 tax filing for 2014 income

  • Capital gains from the sale of shares are subject to income tax and social contributions, irrespective of the amount of the disposals made during the year by the taxpayer. Thus, from the first euro of sale, all capital gains realized in 2014 will be taxed at the progressive tax rate.
  • Under ordinary law, before application of the progressive income tax rate, capital gains realized in 2014 benefit from a tax deduction of:
    • 50% for securities held between two and eight years,
    • 65% for securities held more than eight years.

Capital losses incurred from sales may be deducted from capital gains of the same type made during the year of disposal or within the following ten years.

The information provided above is provided as an illustration. It does not provide details of the specific regulations that may apply to your particular case and should therefore not be construed as legal or tax advice, or as an opinion issued, or a recommendation made by Technip. We recommend that you contact your financial institution for further information.