My company pays compensation to non-resident persons or legal entities. It is liable for withholding tax ?

Some amounts paid by taxpayers with a professional activity in France to persons or legal entities domiciled or established outside of France are liable for withholding tax.

Compensation concerned

Subject to the provisions of international agreements, compensation paid for wage-earning work, non-commercial operations and artistic and sports performances are liable for withholding tax.

Date of payment

Amounts withheld under the provisions of Articles 182A, 182 A bis and 182 B of the French General Tax Code are paid quarterly to the business tax department at the latest on the 15th of the month following the quarter in which payment was made.

Return to fill out

Payment must be accompanied by two copies of form no. 2494 (CERFA no. 10325) showing, besides the identity and address of the beneficiary’s residence for tax purposes or registered office (address abroad), the gross amount subject to the withholding tax, the rate and amount withheld.

The relevant business tax department

The relevant tax department responsible for collection is, accordingly: that with jurisdiction over the taxpayer's residence for tax purposes, registered office or establishment or, in cases where the taxpayer does not have an establishment in France, the Foreign Business Tax Department.

Updated DINR PRO