France Amends Rules Regarding Dividends Participation Exemption Regime

The French National Assembly has reportedly adopted an amendment to the Amending Finance Bill for 2015 that will change the rules regarding the dividends participation exemption regime. The amendment:

• Abolishes the allowed deduction (neutralization) of the taxable 5% proportion for costs and expenses under the participation exemption regime for qualifying dividends from French subsidiaries; and
• Changes the taxable proportion from 5% to 1% for all dividends that qualify for the participation …