Market Taxation Guide - France (securities held in CBF)
This Market Taxation Guide (France) provides the following details:
- Reference information about all taxes applied at source through LuxCSD to securities deposited in CBF; and
- Instructions for obtaining relief at source or a refund of withholding tax, where these are available, through LuxCSD.
New and improved tax information and procedures that become available will be included on an ongoing basis.
Important note:
This Market Taxation Guide (including any attachments and other links) is for informational purposes only and is not intended and should not be considered to be legal advice on any subject matter. Readers of this Market Taxation Guide, whether customers or otherwise, should not act or refrain from acting on the basis of any information included in this Market Taxation Guide without seeking appropriate legal or other professional advice.
Withholding tax
For debt securities:
- Bonds issued before 1 January 1987 are taxed at 15%;
- Bonds issued before 1 January 1965 are taxed at 17%.
No relief at source or reclaim of withholding tax on French debt securities is available through LuxCSD.
For equities:
| Equities | Holding restriction? | Withholding tax rate | Relief at source | Quick refund | Standard refund |
No | 25%a | ||||
Residents of Double Taxation Treaty (DTT) countries | Yes | Yes | Yes | ||
Foreign individuals | Yes | Yes | Yes | ||
Foreign Collective Investment Vehicles (CIVs)b | Yes | Yes | Yes | ||
| EU parent companiesc | Yes | Yes | Yes | ||
Not-for-Profit Organisations | Yes | Yes | No | ||
Foreign exempt entities | Yes | Yes | Yes | ||
Particular foreign entities | Yes | Yes | Yes | ||
French residents (direct customers) | Yes | Yes | No | ||
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a. 30% until 31 December 2019, 28% until 31 December 2020 and 26.5% until 31 December 2021, 25% as of 1 January 2022.
b. Special treatment applies to non-EU CIVs. Refer to section Relief at Source and Standard Refund of this tax guide.
c. EU companies holding a substantial participation in the capital of the French company that is paying the dividend.
Capital gains tax
There is no capital gains tax withheld through LuxCSD on securities held in LuxCSD. Capital gains tax may however be payable on specific gains. Clearstream Banking does not assist in this regard. Please consult your tax advisor for further information.
Stamp Duty
There is no stamp duty withheld through LuxCSD on securities held in LuxCSD. Stamp duty may however be payable on specific transactions. Clearstream Banking does not assist in this regard. Please consult your tax advisor for further information.