French General Tax Code
In forceI.-1. Individuals domiciled in France for tax purposes within the meaning of article 4 B who benefit from distributed income mentioned in articles 108 to 117 bis and 120 to 123 bis are subject to a levy at the rate of 12.8% .
For the calculation of this levy, the income mentioned in the first paragraph of this 1 is retained for its gross amount.
However, natural persons belonging to a tax household whose reference tax income for the penultimate year, as defined in 1° of IV of Article 1417, is less than €50,000 for single, divorced or widowed taxpayers and €75,000 for taxpayers subject to joint taxation may apply for exemption from this levy under the conditions set out in Article 242 quater.
2. The levy provided for in 1 does not apply:
a) To income that is taken into account to determine the taxable profit of an industrial, commercial, craft or agricultural business, or a non-commercial profession;
b) To income relating to securities held in a share savings plan defined in article 163 quinquies D;
c) Income referred to in Articles 163 quinquies B to 163 quinquies C bis exempt from income tax under the conditions set out in Articles 163 quinquies B to 163 quinquies C bis.
II. - When the person who ensures the payment of the income for which the taxpayer is subject to the levy provided for in I is established in France, the income is declared and the corresponding levy is applied and paid by the said person within the time limits provided for in article 1671 C.
III. - 1. When the person who ensures the payment of the income mentioned in the first paragraph of 1 of I is established outside France, only natural persons belonging to a tax household whose reference tax income for the penultimate year, as defined in 1° of IV of article 1417, is equal to or greater than the amounts mentioned in the third paragraph of 1 of I of this article are subject to the levy provided for in the same I. The income is declared and the corresponding levy is paid within the time limits set out in article 1671 C:
a) either by the taxpayer himself;
b) or by the person who ensures payment of the income, when he is established in a Member State of the European Union, or in another State party to the Agreement on the European Economic Area which has concluded an administrative assistance agreement with France with a view to combating tax fraud and evasion, and when he has been mandated for this purpose by the taxpayer.
2. When the declaration provided for in 1 and the payment of the corresponding levy are made by the person responsible for paying the income, it is drawn up in the name and on behalf of the taxpayer.
3. The tax administration may conclude, with each person mentioned in b of 1 and authorised by taxpayers for the payment of the levy, an agreement drawn up in accordance with the model issued by the administration, which organises the arrangements for the payment of this levy for all these taxpayers.
4. Repealed.
5. The taxpayer shall produce to the tax administration, at its request, the information required to establish the levy.
IV. The levy provided for in I is controlled and collected according to the same rules and under the same securities, privileges and penalties as the levy mentioned in article 125 A.
V.-.The levy provided for in I is not in discharge of the income tax established under the conditions provided for in 1 or 2 of article 200 A and due in respect of the income to which this levy has been applied.
This deduction is deducted from the income tax due for the year in which it was made. If it exceeds the tax due, the excess is refunded.
