End and refund of the French 3% tax on distributions

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The French Constitutional Court rules that the 3% contribution on distributions is unconstitutional

On 6 October, 2017, the French Constitutional Court, in its decision (n°2017-660 QPC), held that the 3% contribution on distributions is unconstitutional on the ground that it is contrary to the constitutional principles of equality before the law and of equal discharge of public burdens.

On the basis of this decision, as from 6 October, 2017, the contribution is not due anymore, whatever the origin of the distributed profits, i.e., the redistribution of dividends received from subsidiaries or the own profits of the distributing company.

In addition, any French company that has paid the 3% contribution in the past can obtain a refund if it has filed a claim before 6 October 2017. Otherwise, it could ask for the refund of the contribution paid since 1 January 2015 by introducing the claim before 31 December, 2017, but since the wording of the decision of the French Constitutional Court is not clear as regards statute of limitation, it is not certain that such claim will be successful.


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