Tax rates on branch profits are the same as on corporate profits. As a principle, branch profits are deemed to be distributed to the head office. WHT is levied on French branches of non-resident, non-EU corporations at the rate of 30%, to be reduced down to 25% in 2022, or a reduced tax treaty rate (e.g. for the United States [US], 5%), on net profits. Refund (limited or full) of tax may be claimed to the extent that the taxable amount exceeds the dividend(s) actually distributed by the foreign corporation during the 12 months following the close of the fiscal year concerned, or to the extent the dividends are distributed to residents of France.
Profits realised in France by non-resident corporations whose head offices are located in an EU country or in the European Economic Area are not subject to branch WHT, provided that certain conditions are met (e.g. effective head office in an EU country or non-resident corporation subject to corporate taxation).