The instruction of 25 October 1994 issued by the Service de la Législation Fiscale relating to the modified Franco-Germany tax treaty of 1959 states that German legal persons holding less than 10 % of the capital of a French company benefit from the avoir fiscal tax credit attached to dividends paid by the French company, even if the shares are held by a German UCITS or unit trust. To calculate the level of holding, the direct participation of the German legal person should be included as well as the holding of the unit trust intermediary.
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