Finance Act for 2022
Change of the withholding tax rate on French-source dividends paid to non-resident legal entities
The Finance Act 2020 had aligned the withholding tax rate applicable to dividends paid to legal entities resident outside France with the corporate income tax rate, the gradual reduction of which should lead to a rate of 25% from 2022.
The Finance Act 2022 confirms the reduction of the withholding tax rate on French-source dividends paid to non-resident companies from 26.5% to 25% as of January 1st, 2022. This rate thus remains aligned with the corporate income tax rate.