France 3% Contribution on Distributed Profits Referred to Constitutional Court and CJEU

On 27 June 2016, issues regarding France's 3% income tax contribution on profits distributed by a resident company and the exemption for French tax-consolidated groups were referred to both the French Constitutional Court and the Court of Justice of the European Union (CJEU). The provisions for the 3% contribution are included under Article 235 ter ZCA of the General Tax Code.

The referral to the Constitutional Court is based on the argument that the exemption for distributions within tax-co…