Module 18 min854 wordsFree — no account
Exempting 95 % of a dividend, and paying on the rest
Dated official sources, and the contents this module links to · 1 section
Official sources
- Légifrance — French tax code, article 145: the parent-subsidiary regime applies to companies subject to corporation tax at the ordinary rate holding participations representing at least 5 % of the issuing company's capital, or 2.5 % of capital combined with 5 % of voting rights under specific conditions; the shares must be held for two years where they represent at least 5 % of capital, and for five years under the alternative threshold; the regime carries exclusions covering certain investment companies, property entities and income from non-cooperative States and territories; version in force since 16 February 2025 — verified on September 8, 2026
- Légifrance — French tax code, article 216: net participation income qualifying for the parent-subsidiary regime may be deducted from the parent company's total net profit, after deducting a share of costs and expenses set uniformly at 5 % of total participation income, tax credit included; that rate is set at 1 % where the income is received by a company belonging to a group within the meaning of articles 223 A or 223 A bis from a holding in another group company held for more than a year, and for certain subsidiaries established in a European Economic Area State with an administrative assistance agreement; version in force since 31 December 2023 — verified on September 8, 2026
Every figure and its source
Every figure in this module anchored to a fiscal constant, with the official page that establishes it.
- Capital holding threshold — 5 %
legifrance.gouv.fr · 2026 rules - Share of costs and expenses, ordinary case — 5 %
legifrance.gouv.fr · 2026 rules - Share within a consolidated group — 1 %
legifrance.gouv.fr · 2026 rules
Contents linked from this module
- Parent-subsidiary regime calculator
Cost the share added back and the residual tax on a dividend received from a subsidiary.
Educational content, current with the sources cited. It does not replace advice tailored to your situation. These courses are neither certifying nor CPF-eligible: they prepare for no certification registered with the French RNCP or specific register.