Dividends and interest taxed under the income tax scale, with 21% and 24% advance payments
The 2013 Finance Act abolished the option for the flat-rate withholding tax in full discharge: dividends and interest received from 2013 are taxed under the progressive income tax scale. A compulsory non-final withholding, credited against the following year's tax, is levied at 21% on dividends and 24% on interest. Households with reference taxable income below €50,000 (single) or €75,000 (couple) for dividends, and below €25,000 or €50,000 for interest, may ask to be exempted. Households receiving no more than €2,000 of interest a year may opt for a 24% flat-rate tax.
Measure originators
A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.
Measure impact
The measure concerns holders of investment income. The Constitutional Council struck down the application to 2012 income of the removal of the final-discharge option (paragraph IV of article 9) and the increase to 75% of two final withholding rates (points e and h of article 9), including the rate on income from anonymous investments. The regime was replaced by the 12.8% single flat-rate levy on 1 January 2018.
Official references
Sources
Procedure timeline
Follow the progress of this fiscal measure through the different stages of the parliamentary procedure.
Administrative implementation
Entrée en vigueur de la mesure et mise en œuvre par l'administration
Possible referral to Constitutional Council
Décision de conformité / censure partielle
President of the Republic signature
Publication au Journal officiel
National Assembly has the final say
Si échec CMP
Joint committee
Désaccord éventuel
Debate and vote
Debate and vote
Débat et vote en séance publique à l'Assemblée nationale, ou engagement de la responsabilité du Gouvernement (article 49.3)
Council of Ministers
Validation interne