Remuneration paid to the members of the Board of Directors and Supervisory Board, non-French tax residents
Remuneration paid to the members of the Board of Directors and Supervisory Board, non-French tax residents
Published on 03 February 2016
The directors’ fees paid to the members of the Board of Directors and the Supervisory Board in remuneration for their duties on the Board are taxed differently depending on the tax residence of the beneficiaries.
For French tax residents:
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A flat withholding tax of 21 %, in addition to social taxes
For non-French tax residents:
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a withholding tax of 30 % subject to international tax treaties, increased to 75 % for income paid in a non-cooperative State or territory,
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exempt from income tax
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which is not (or was not) subject to any refund.
Indeed, starting with the income received since 1 January 2016, and only for the taxpayers established in a Member State of the European Economic Area, the withholding tax of the directors’ fees paid to non-residents is refundable, in part, if the effective income tax rate in France is below the rate applied (30 % or the conventional rate).