French General Tax Code
In forceI. - Give rise to the application of a withholding tax when they are paid by a debtor who carries on an activity in France to persons or companies, subject to income tax or corporation tax, who do not have a permanent place of business in that country:
a. Amounts paid as remuneration for an activity carried out in France in the exercise of one of the professions mentioned in article 92;
b. The proceeds defined in article 92 and received by inventors or in respect of copyright, those received by breeders of new plant varieties within the meaning of articles L. 623-1 to L. 623-35 of the Intellectual Property Code, as well as all proceeds from industrial or commercial property and assimilated rights;
c. Sums paid as remuneration for services of any kind provided or used in France.
d. Sums, including salaries, corresponding to sporting services provided or used in France, notwithstanding the provisions of Article 182 A.
I bis. - The basis for deduction is the gross amount of the sums or proceeds paid. When the beneficiary of these sums or income is a legal entity or a body whose results are not subject to income tax in the hands of a shareholder and whose registered office or permanent establishment in whose results the sums or income are included is located 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 to combat tax fraud and evasion and which is not non-cooperative within the meaning of Article 238-0 A, the base for this withholding tax is determined after deduction of an allowance representing charges equal to 10% of these sums or proceeds.
II. - The rate of withholding is that provided for in the second paragraph of I of Article 219.
It is reduced to 15% for the remuneration referred to in d of I.
The withholding is deducted from the amount of income tax established under the conditions provided for in Article 197 A. Where it exceeds this amount, the taxpayer may request reimbursement of the excess deduction made.
III. - The rate of withholding is increased to 75% when the sums and proceeds, other than salaries, mentioned in I are paid to persons domiciled or established in a non-cooperative State or territory within the meaning of Article 238-0 A other than those mentioned in 2° of 2 bis of the same Article 238-0 A, unless the debtor provides proof that these sums correspond to actual transactions which mainly have a purpose and effect other than to enable them to be located in a non-cooperative State or territory. This withholding is in full discharge of income tax and is non-refundable.
