Since 2012, a 3% tax applies on dividends paid by French entities, notably to shareholders established or domiciled outside of France.

Following the filing of a complaint, the EU Commission investigated this 3% tax on dividends’ distributions and recently sent a letter of formal notice to the French Government. France has now to answer this letter so as to convince the EU Commission that this tax is in compliance with EU regulations.

Though the infringement procedure is still at an early stage, we highly recommend that taxpayers file claims with French tax authorities as soon as may be, so as to protect their interests and avoid dismissals based on statutes of limitations (for instance, any refund claim regarding the 3% tax paid in 2013 will have to be filed before December 2015). Indeed, the EU Commission did regard the arguments of the claimant as being grounded enough to launch this procedure against France.