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French corporate income tax surcharge of 3% on dividends: Buy-back of shares achieved before January 1st, 2015

Tax Alert

French companies must claim the 3% surtax paid in 2014 relating to a buy-back of shares by the deadline of December 31, 2016.

04.27.16

The Supreme Court, by a decision of April 20, 2016, has recognized that the amount given to shareholders pursuant to a buy-back of shares achieved before January 1st, 2015 is not liable to the 3% surtax.

Consequently, French companies concerned by a buy-back of shares in 2014 who paid the 3% surtax must file a claim to the tax authorities before December 31st, 2016 to obtain the reimbursement.

As a reminder, from January 1st, 2015, the French legislator opted for the taxation of the buy-back of shares on capital gains. Therefore, the amount received by the shareholders is no more subject to the 3% surtax (amended French Finance Act for 2014 n° 2014-1655, December 29, 2014).

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Michel Guichard Ruthy Zaghdoun
Email: mguichard@taj.fr Email: rzaghdoun@taj.fr

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