The income tax treaty between France and China became effective from January 1, 2015. The treaty was signed on November 26, 2013 and the necessary ratification procedures have now been completed.
Under the treaty, the following withholding taxes will apply:
- Dividends: 5 percent for corporate shareholders that hold at least a 25 percent share of the company paying dividends. Withholding tax on dividends remains at a 10 percent rate in other cases.
- Interest: Taxation in the source country on interest received by listed government entities is zero and is 10 percent in all other cases.
- Royalties: Source country taxation on royalties is set at a 10 percent rate.
