You can still submit a tax claim before the French tax administration until 31 December 2014 regarding the distributed incomes in 2012.

Companies liable to pay the tax of 3 %

  • Except exemption, the French and foreign companies subject to company tax are liable to pay the tax of 3 % but also the companies which benefit from exemptions and specific tax schemes in corporate tax and the subsidiaries and stable establishment in France of foreign companies. 

Distributions subject to tax of 3 %

  • The definition of distributed incomes is very extensive: dividends (including under Parent-Subsidiary regime), prepayments and loans to shareholders, redemption of units, excessive remuneration, lavish spending, hidden distributions…
  • The distributions within integrated groups are exempted. 

Terms of payment

  • The tax of 3 % must be paid on the first advance corporation tax payment following the payment of distributed incomes through the 2571 form. 

Arguments for the reimbursement

  • As the result of the elimination of double taxation, you can contest the inclusion within the tax of 3 % base:
    • dividends benefiting from the parent-subsidiary regime, under Article 4 of the Parent-Subsidiary Directive,
    • foreign companies’ profits, under conventional law.
  • Discrimination exists between a French fixed establishment and a French subsidiary of a foreign company, which is contrary to Community law.