French-Italian Double Tax Treaty dated October 5, 1989 - Transfer of half of the tax credit ("avoir fiscal") to the Italian parent companies
In an Instruction dated March 11, 1994 commenting on the French-Italian Double Tax Treaty dated October 5, 1989, the Tax Authorities had postponed the application of the provisions relating to the transfer of half of the tax credit linked to the French source dividends to some Italian resident companies.
In a recent instruction dated July 12, 1996, the Tax Authorities specify that these provisions are now applicable and indicates the conditions according to which this transfer might be realized for dividends paid since May 1st, 1992.
It especially specifies that the whole of requests concerning dividends paid between May 1st, 1992 and December 31, 1994 will exceptionally be accepted by the French Tax Authorities if they are sent to the "Centre des Impots" of non-residents at the latest on December 31, 1996.
This instruction only concerns dividends paid between May 1st, 1992 and its publication date (i.e. July 25, 1996), including dividends paid since January 1st, 1996.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be brought about your specific circumstances.
For additional information contact Claire Acard on 33/(1)/55 61 10 10, Lionel Benant on 33/184.108.40.206, Joel Fischer on 33/220.127.116.11, or Laurent Borey on 33/(1)55 61 10 10 or enter text search: "Archibald Andersen Profile".
The members of Archibald Andersen Association d'Avocats (S.G. Archibald and Arthur Andersen International) are registered with the Hauts-de-Seine Bar and the Lyon Bar.