Understanding French Withholding Tax

French withholding tax applies when income such as royalties is paid from a French entity to a person or company that is not tax resident in France. The legal basis is Article 182 B of the French General Tax Code.

What is taxed?

The following French-source income is subject to withholding:

• royalties linked to intellectual property rights,
• music rights and master rights payments,
• any revenue classified as cross-border IP income.

Reprtoir Distribution payments fall into this category.

Default withholding rate

If no treaty benefit applies, or if no residency certificate is provided, France applies the domestic standard rate:

25 percent (current French corporate income tax rate, used as the default withholding rate).

How tax treaties reduce or eliminate withholding

France has signed many bilateral tax treaties that override the default rate. These treaties may:

• reduce the withholding tax rate,
• or eliminate withholding entirely.

The exact rate varies by country. For example:

• United States: 0 percent with Form 6166 + CERFA 5000
• United Kingdom: 0 percent with certificate of residence + CERFA 5000
• Germany: often 0 percent depending on the nature of the income
• No treaty (e.g. Hong Kong): 25 percent final withholding

Why a residency certificate is required

Under French law, Reprtoir cannot apply treaty benefits without official proof of residence.

This proof is provided through:

• CERFA 5000 (certificate of residence)
• Form 6166 for U.S. residents
• and, when necessary, CERFA 5003 to claim treaty benefits or refunds

If the client does not provide documentation, Reprtoir must apply the French default withholding.

When France accepts alternative proof

Some countries and some types of entities do not require verification of “liable-for-tax” status in their treaty with France.

Examples include:

• Belgium
• Morocco
• Cameroon
• Malawi
• United Arab Emirates
• Qatar
• Senegal
• South Africa
• (and others listed in the CERFA guidance)

For these countries, the certificate of residence may be easier to obtain, but the CERFA 5000 form still must be completed.