French Tax: difference between salary and dividends

[ccmmkk]

This year I will have to pay French tax. I currently work in France but my salary is somewhat complicated. The French project pays a US company; which pays my Canadian company; which then pays me. Since I'm the sole owner of the Canadian company, I can pay myself whatever salary I choose. My question is, does French Gov't tax dividends differently than a salary? If there is, I have the ability to pay myself in either a salary or a dividend and it could be beneficial to me.

Thanks

[Bevdeforges]

Oh yes, the French government taxes dividends much differently than salary/income - and there are darned few deductions you can take against them.

On what basis are you paying your cotisations? (i.e. your health insurance and retirement contributions in France) Most cotisations are deductible from your gross income (i.e. salary) in determining taxable income. Then, with salary, you're entitled to a 10% reduction that is supposed to cover your "professional costs" (you can take more if you record all your allowable expenses and have receipts to back them up). No can do with dividends.

It could depend on what sort of visa/carte de séjour you're here on, too.
Cheers,
Bev

[ccmmkk]

Bev,

thanks for the reply. Do know roughly what the rate is for income vs dividend?