[jchev]

Does anyone know what the dividend tax is in France for a stock? I am married to a Frenchman who lives in US and I live in France with our child. I own the stock. Do I have to report the dividends in France, as well, as in US.?

 

[Bevdeforges]

For interest and dividends, if you are considered resident in France, you report foreign dividends on form 2047-K. Dividends from the US are accorded a 17.7% credit (or a credit of 15% under certain circumstances). The idea is to offset the French taxes due on them if US income taxes have been paid.

But you may run into a slight problem as French taxes are assessed on a by-household basis - it's assumed that a married couple maintains a household in common. You may want to check on the issue of your tax residence if one of you is living in France and the other in the US.
Cheers,
Bev

 

[twiglet09]

I am getting a little lost as to how foreign dividends are treated in France as well, especially as there is something about a new 3% tax???? Although not sure relevant for last years tax form or whether even gone through parliament yet.

If you receive dividends in the UK, there is already 10% tax credit taken into account.

If for example I received 20,000 pounds in dividends in the UK, there is 2,222 pounds already taken in tax.

Do I then get a 40% abatement here, is that on the gross amount?
There is then an allowance - if I live with my partner in France is this taken as being the household allowance or single allowance if not married?

So would it be 22,222 less 40% less allowance and then this amount added to any other income and taxed at marginal rates? And is the tax already paid at source in the Uk then taken into account?

There is also mention in some threads of a further 11.5% credit?

And what are social charges taxed at? 12.3% on gross amount?

What if already paying into French system (RSI payments etc) each year?

 

[Bevdeforges]

I don't have all the answers for you, but let me try to give you what I know:

I am getting a little lost as to how foreign dividends are treated in France as well, especially as there is something about a new 3% tax???? Although not sure relevant for last years tax form or whether even gone through parliament yet.

I think this is still in the proposal stage - but not sure of that.

If you receive dividends in the UK, there is already 10% tax credit taken into account.

If for example I received 20,000 pounds in dividends in the UK, there is 2,222 pounds already taken in tax.

Take a look at the French tax form 2047. There is a chart on p. 3 of the form showing "Crédit d'impôt : taux applicables aux revenues nets de l'impôt prélevé à la source" For the UK, dividends are indicated as having a taux of 11.2% (which is, I believe what the fisc is assuming you have been assessed for - but read through the instructions for that form to be sure).

Do I then get a 40% abatement here, is that on the gross amount?
There is then an allowance - if I live with my partner in France is this taken as being the household allowance or single allowance if not married?

I don't believe you get an abatement on dividends - but you do get a credit for taxes already paid in the UK. (Again, I've never had to deal with dividends, so check that out.) If you aren't married or PACS'd with your partner, then you each have to fill out a separate tax declaration.

So would it be 22,222 less 40% less allowance and then this amount added to any other income and taxed at marginal rates? And is the tax already paid at source in the Uk then taken into account?

There is also mention in some threads of a further 11.5% credit?

Foreign source income is handled a little differently than regular income. Normally, it's added into the total, but you are allowed a credit, either in the amount of the taxes you have already paid or a credit that is equal to the French tax on that income. Perhaps someone more familiar with taxation of foreign dividends can help us here.

And what are social charges taxed at? 12.3% on gross amount?

What if already paying into French system (RSI payments etc) each year?

Not sure on that one, but if you're assessed social charges on your dividends, it's a separate charge over and above any RSI payments you make on your French income.

OK, who here declares foreign dividends and can help out on this question?
Cheers,
Bev

 

[parsnips]

I am getting a little lost as to how foreign dividends are treated in France as well, especially as there is something about a new 3% tax???? Although not sure relevant for last years tax form or whether even gone through parliament yet.

If you receive dividends in the UK, there is already 10% tax credit taken into account.

If for example I received 20,000 pounds in dividends in the UK, there is 2,222 pounds already taken in tax.

Do I then get a 40% abatement here, is that on the gross amount?
There is then an allowance - if I live with my partner in France is this taken as being the household allowance or single allowance if not married?

So would it be 22,222 less 40% less allowance and then this amount added to any other income and taxed at marginal rates? And is the tax already paid at source in the Uk then taken into account?

There is also mention in some threads of a further 11.5% credit?

And what are social charges taxed at? 12.3% on gross amount?

What if already paying into French system (RSI payments etc) each year?

Hi,
The dividends are declared gross on form 2047 page 2, where you calculate a 11.2% credit (according to the table on page 3). The 10% UK credit is ignored.
The gross amount and credit are transfered to forms 2042 and 2042C following the notes on page 2 form 2047.
The special personal allowance has been abolished this year.
The gross dividends are taxed at your marginal rate after a 40% reduction and the 11.2% credit given off your final tax bill. The gross dividend is also subject to 15.5% social charges--the fact that you may be contributing via employment or a business has no effect on this. ( In my view the social charge on salaries and that on investment income are totally different taxes and should have different names)
If you are personally paying tax on dividends in the UK you should not be , as they are taxable only in France if you are french resident.

 

[twiglet09]

As far as I am aware there is no way round paying tax on dividends in the UK, the tax credit is taken at source and cannot reclaim this or change it.

 

[parsnips]

As far as I am aware there is no way round paying tax on dividends in the UK, the tax credit is taken at source and cannot reclaim this or change it.

Hi,
The 11.2% deduction on the 2047 is based on the UK corp. tax credit.

 

[NickZ]

Does anyone know what the dividend tax is in France for a stock? I am married to a Frenchman who lives in US and I live in France with our child. I own the stock. Do I have to report the dividends in France, as well, as in US.?

You don't say which country the paying company is in. Nor do you mention your nationality.

If you are non American holding US stocks you should have filed a W8Ben form with the IRS. Then the broker would give you the treaty benefits. No need to file in the US. The broker would deduct whatever the current treaty dividend tax rate is. 15% I think for France.

If you're US you have the American filing requirements. Whatever those are.

 

[tonycharente]

Change in the 11.2% ???

Hello,
My first post... I'm a Brit Ex-Pat and haved lived in the Charente for around 11 years.

I'm just completing my latest French tax declaration (so for income rec'd in 2012) and in the form 2047K where it gives the rates for the "Crédit d'impôt" for UK dividends it now says 17.7% whereas it used to say 11.2% (as per the earlier posts on this thread.) Has the rate really changed, or is this just a typo in their form?

This is, of course, good news if it really has changed, but I'd like to be certain...
Any ideas anyone?

Thanks,
Tony