Taxation rates on dividends

[Deimos]

I apologise if this question has been asked before (but I could not find anything on a Search).

For somebody resident/domiciled in France, paying French tax, etc., is income from company dividends (e.g. U.K. companies) subject to a higher/special tax rate (compared to normal income tax rates), or is it all just counted as income and taxed at whatever rate(s) you have on normal income tax ?

Are there “thresholds” such that you can get so much tax free (or lower rate) from dividends, but then higher rates for the remainder (along the lines of UK CGT allowance).

Many thanks

Regards

Ian

[Pangur]

I know this didn't get any response first time round, but can anyone shed anylight on this?  I'd also like to add: do you have to pay social insurance as well as income tax on company dividends?

We'll get professional advice when filling out our tax forms, but it would be nice to know now whether we'll see much (or any) money from dividends.....

 

thanks

 

[Quillan]

Normally you, well I do anyway, have the tax deducted from your dividend at source in the UK and you receive a tax certificate. I send copies to the tax man in France and he gives me the tax back, adds the dividend to my taxable income and tax's me here in France. You can of course not tell them because of the dual taxation rules. It depends on your personal tax situation here in France which way you go.

[Amandap]

surely you don't have a choice whether or not you declare dividends? These, I believe, count as 'unearned' income and therefore attract the 11% CSG thingy. I hope I'm wrong. I'll have to go away and read the double taxation treaty, but if you're resident in France I thought you had to declare all income, no matter where it comes from?

Amanda

[Hereford]

Our understanding is that ALL income must be declared in France.  Tax deducted from Interest in the UK can be claimed back in the UK, but obviously not tax credits. We do not have dividends but it would appear from Quillan's reply that at least you would get credit for the Tax credit in France.  We assume you enter the "gross" dividend and show the tax credit separately on your French return.

We agree too that the 11% CSG will be due as it is on all investment income.

H

 

[Pangur]

Thanks for that.  The tax rates are fine, it's the social insurance that scares me....

[Quillan]

[quote]Our understanding is that ALL income must be declared in France. Tax deducted from Interest in the UK can be claimed back in the UK, but obviously not tax credits. We do not have dividends but it wou...[/quote]

You get a Tax Voucher for your dividend which will show number of shares held, dividend rate, tax credit and dividend payment. This is what you give a copy of to the French tax man. If you intend to claim the tax back in the UK you will need to show them proof (ie your French tax form) that you have paid tax on them in France. CSG does not count for a tax rebate in the UK.

I have gone back through my last three years and can see that whilst I actually declared them there is nothing on my tax return so it would appear I have neither a tax repayment or that they have added it to my French tax return. Nor have I paid CSG on them.

I know many people just don't bother declaring them and judging by the fact it has made no diffence in my instance I can see why. I will however continue to declare mine. It's up to the individuals piece of mind.