French corporate income tax surcharge of 3% on dividends: buy-back of shares achieved before January 1st, 2015

French companies must claim the 3% surtax paid in 2014 relating to a buy-back of shares by the deadline of December 31, 2016.

The Surpreme Court, by a decision of April 20, 2016, has recongnized that the amount given to shareholders pursuant to a buy-back shares achieved before January 1st, 2015 is not liable to the 3% surtax.

Consequently, French companies concerned by a buy-back of shares in 2014 who paid the 3% surtax must file a claim to the tax authorities before December 31, 2016 to obtain the reimbursement.

As a reminder, from January 1st, 2015, the French legislator opted for the taxation of the buy-back of shares on capital gains. Therefore, the amount received by the shareholders is no more subject to the 3% surtax (Amended French Finance Act for 2014 n° 2014-1655, December 29, 2014).