French corporate income tax surcharge of 3% on dividends: buy-back of shares achieved before January 1st, 2015

French companies must claim the 3% surtax paid in 2014 relating to a buy-back of shares by the deadline of December 31, 2016.

The Surpreme Court, by a decision of April 20, 2016, has recongnized that the amount given to shareholders pursuant to a buy-back shares achieved before January 1st, 2015 is not liable to the 3% surtax.

Consequently, French companies concerned by a buy-back of shares in 2014 who paid the 3% surtax must file a claim to the tax authorities before December 31, 2016 to obtain the reimbursement.

As a reminder, from January 1st, 2015, the French legislator opted for the taxation of the buy-back of shares on capital gains. Therefore, the amount received by the shareholders is no more subject to the 3% surtax (Amended French Finance Act for 2014 n° 2014-1655, December 29, 2014).

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 […]