3% Dividend Tax : unconstitutionality proclaimed by the Constitutional Court – Claims can still be filed for the 3% Tax paid in 2015, 2016 and 2017

The Constitutional court, in its decision #2017-660 QPC of October, 6 2017 rules that the 3% dividend tax in its entirety is contrary to the Constitution (Articles 6 and 13 of the Declaration of the Rights of Man and of the Citizen).

Therefore, whatever the origin of the dividends distributed (re-distribution of dividends from subsidiaries or operating profit), the 3% Tax provided by Article 235 ter ZCA of the General Tax Code is abolished from today.

Moreover, the Constitutional court’s decision applies for the past even to taxpayers that have not yet claimed the contribution paid in 2015, 2016 and 2017.

Actions to be taken:

  • Dividends that will be paid as of today will not be subject to the 3% Tax;
  • In order to protect their rights to repayment of the 3% Tax paid in 2015, 2016 and 2017, businesses concerned should submit their claims now, and in any case by the deadline of 31 December 2017 for tax paid in 2015.
Michel Guichard

Michel Guichard, Partner, leads the Indirect Tax activity. With more than 30 years’ experience in International and French Tax law, he advises his clients on indirect tax matters. Michel is […]