The dividend is the portion of the Group's net profit that is distributed to shareholders. At Air Liquide, this portion represents nearly 50%, a sign of the Group's commitment to sharing the fruits of its growth with shareholders.
Dividends are submitted to income tax (depending on your marginal tax rate) after unlimited annual deduction of 40%.
Dividends are also subject to social contributions of 15.5% (rate in force on the day).
An advanced withholding tax of 21% applies at dividend payment date and on the income tax paid the following year.
You can avoid this advance tax payment.
To benefit from this exemption, your reference taxable income for the previous year must be less than €50,000 for single taxpayers or less than €75,000 for couples.
In this case, you will have to submit a sworn statement to your account manager (Air Liquide Shareholder Services for direct registered shareholders, or your bank for intermediary registered or bearer shareholders) before November 30 of current year and you will benefit from the exemption the year following the sending of your statement. After that date, 21% of the gross dividend amount will be automatically withheld at pay date.
In general, a tax agreement between France and the shareholder’s fiscal residence country will establish a reduced fixed tax rate for dividends earned by non-French residents. To take advantage of these agreements, remember to have the tax authorities from your country of residence sign the 5000 form(a) and send it to your account manager (Air Liquide Shareholder Services for direct registered shareholders or your bank for intermediary registered or bearer shareholders) before mid-April 2015.
If this form is not submitted, a direct withholding tax of 30% will be applied. Non-French residents are not required to pay social contributions on dividends.
Please remember to inform your account manager in the case of a change of address, so that he or she may apply the tax of your country of residence.
(a) The Cerfa form no. 12816*01, which requests that the withholding rate set by the agreement be applied, downloadable from www.impots.gouv.fr)