Removal of withholding tax on dividends paid to foreign investment funds

Article 6 of the second amending finance act for 2012 removes withholding tax on French-source dividends paid to foreign collective investment undertakings established in the European Union or in a State that has an administrative assistance agreement with France, where they have features similar to French funds. Withholding tax remains due on income paid in a non-cooperative State or territory. The measure applies to distributions paid from 17 August 2012 and follows a ruling of the Court of Justice of the European Union finding the difference in treatment contrary to EU law.