Are you eligible to apply for an exemption from the mandatory witholding tax on investment income?
Taxable income from investments and distributions (in particular, interest and/or dividends on securities accounts), received by individual taxpayers who are resident for tax purposes in France, is subject, by default, to the single flat-rate withholding tax (PFU).
However, if an option is expressly exercised when filing the tax return, a tax household may choose to be taxed on the progressive income tax scale, rather than at the flat rate of 12.8%.
Withholding tax at the rate of 12.8% is, however, still deducted at source when such income is registered in the account or on the annual interest capitalisation date.
This "mandatory withholding tax" entitles the taxpayer to a tax credit that can be set against their income tax liability.
However, an individual taxpayer may ask each paying institution from which they receive investment income to apply an exemption from this withholding tax, in respect of each calendar year, to their interest and/or dividend payments if they meet the conditions defined by law.
For income received in 2024 to be exempt from this withholding tax, you must confirm, by 30 November 2023, that the reference taxable income (RTI) of the tax household to which you belonged in 2022, as stated on your 2023 income tax assessment notice, does not exceed the following amounts:
DIVIDENDS | INTEREST | |
Taxpayers who are married, in a civil partnership, subject to joint taxation | RTI < €75,000 | RTI < €50,000 |
Taxpayers who are widowed, single or not subject to joint taxation | RTI < €50,000 | RTI < €25,000 |
How do i submit a withholding tax exemption application to Societe Generale Securities Services?
- For directly registered securities held in an individual account, your exemption application must be submitted to us using the dedicated online questionnaire available in your Sharinbox area, no later than 30 November 2023.
- For directly registered securities held in a co-ownership account, a joint account, a split ownership account (life interest/remainder interest), or an account subject to legal administration, a completed withholding tax exemption application, available on request from NOMILIA by telephone on +33 (0)2 51 85 67 89, must be received by us no later than 30 November 2023.
For more information, please refer to the information notice on the withholding tax exemption for 2024 income available in your Sharinbox area.