DT7260 - France: Dividends pre-payments

Where a French company pays a dividend out of tax-free reserves or out of profits which have borne tax at a rate of less than 33 1/3 per cent, a prepayment (précompte) is levied when the dividend is paid. Précompte is not levied in the case of certain specialised French investment companies. Where a United Kingdom resident receives a dividend from a French company in respect of which a précompte has been levied and the United Kingdom company is not entitled to claim the payment of avoir fiscal, it can claim repayment of the précompte less a withholding tax of 15 per cent. Amounts refunded in respect of the précompte are deemed to be dividends for the purposes of the agreement. See DT7268 for instructions on the method of claim.