French General Tax Code
In force1. The withholding tax provided for in 1 of Article 119 bis shall be paid by the person making the distribution, who shall be responsible for withholding the amount from the sums paid to the beneficiaries of the said income.
2. The withholding tax provided for in 2 of article 119 bis is declared and paid to the Treasury by the person established in France who ensures payment of the income.
3. When the person mentioned in 2 ensures the payment of income from securities admitted to trading on a financial instruments market operated by a market undertaking or an investment services provider other than a portfolio management company or any other similar body for the benefit of a legal entity established outside France, the latter may pay the withholding tax provided for in 2 of Article 119 bis when it meets the following conditions:
a) It is established in a Member State of the European Union or in another State party to the Agreement on the European Economic Area which has entered into an administrative assistance agreement with France with a view to combating tax fraud and tax evasion;
b) It has concluded an agreement with the French tax authorities, drawn up in accordance with the model issued by this authority, which organises the declaration and payment procedures for the aforementioned withholding tax and provides for the transmission to this same authority of any supporting documents for these declarations and payments;
c) It is authorised by the person mentioned in 2, who remains the legal tax payer, to make the declaration and payment of the withholding tax in his name and on his behalf.
4. A decree lays down the terms and conditions for the application of 2 and 3 and, in particular, the obligations to which the persons responsible for carrying out the deduction must be subject.
