French General Tax Code
In forceI. (Expired)
II.-Retirement benefits paid in the form of a lump sum taxable in accordance with b quinquies of the 5th of article 158 may, at the express and irrevocable request of the beneficiary, be subject to a deduction at the rate of 7.5% which releases the income to which it applies from income tax. This levy is based on the amount of the capital less an allowance of 10%.
This levy is applicable when the payment is not split into instalments and the beneficiary can prove that the contributions paid during the period in which the rights were built up, including where applicable by the employer, were deductible from his taxable income or related to exempt income in the State that was entitled to tax it.
The levy is assessed, controlled and collected in the same way as income tax and under the same securities, privileges and penalties.
These provisions do not apply to the benefits mentioned in Article 80 decies nor to those from a retirement savings plan mentioned in Article L. 224-1 of the Monetary and Financial Code or a French sub-account of the pan-European individual retirement savings product mentioned in Article L. 225-1 du même code.
