{"id":9553,"date":"2025-11-21T10:33:21","date_gmt":"2025-11-21T09:33:21","guid":{"rendered":"https:\/\/pkfbofidi.com\/?p=9553"},"modified":"2025-11-21T10:33:21","modified_gmt":"2025-11-21T09:33:21","slug":"received-dividends-from-france-tax-authorities-finally-accept-the-credit-of-fbb-or-not-quite","status":"publish","type":"post","link":"https:\/\/pkfbofidi.com\/en\/received-dividends-from-france-tax-authorities-finally-accept-the-credit-of-fbb-or-not-quite\/","title":{"rendered":"Received Dividends from France? Tax Authorities (Finally) Accept the Credit of FBB\u2026 Or Not Quite?"},"content":{"rendered":"

The double taxation treaty between Belgium and France provides that a credit may be applied via the so-called Fixed Foreign Portion (\u201cFBB\u201d). The credit amounts to 15% of the net amount of the dividend (i.e., after deduction of the French withholding tax). Since the double taxation treaty takes precedence over domestic Belgian law, this FBB must be applied.<\/p>\n

Below, we would like to clarify the difference with an example:<\/p>\n\n\n\n\n\n\n\n\n
\u00a0<\/strong><\/td>\nWithout FBB<\/strong><\/td>\nWith FBB<\/strong><\/td>\n<\/tr>\n
Gross Frans dividend<\/strong><\/td>\n100,00 EUR<\/td>\n100,00 EUR<\/td>\n<\/tr>\n
French withholding tax<\/strong><\/td>\n–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 12,8 %<\/td>\n–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 12,8 %<\/td>\n<\/tr>\n
Net Frans dividend<\/strong><\/td>\n87,20 EUR<\/td>\n87,20 EUR<\/td>\n<\/tr>\n
Belgian withholding tax<\/strong><\/td>\n–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 30%<\/td>\n–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 15% (30%-15%FBB)<\/td>\n<\/tr>\n
Net dividend in Belgium<\/strong><\/td>\n61,04 EUR<\/td>\n74,12 EUR<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The procedure for reclaiming the FBB was not clear and differed depending on whether or not the dividends were included in the personal income tax return. The tax authorities were of the opinion that the FBB could only be applied when the dividends were indeed declared in the personal income tax return.
\nHowever, the Court of Cassation has repeatedly ruled that the FBB can also be applied when the French dividends have been subject to withholding tax in Belgium but were not declared in the personal income tax return (system of the liberating withholding tax).<\/p>\n

New circular of 17 October 2025<\/h2>\n

On 17 October 2025, the tax authorities issued a circular regarding the application of the FBB on French dividends. In this, the tax authorities finally follow the case law, which is good news for private investors with French dividends.<\/p>\n

From now on, they accept the application of the FBB, even if the dividends were not included in the personal income tax return. It is important, however, that as a taxpayer you can prove that a (withholding) tax was deducted in France in order to benefit from the FBB in Belgium.<\/p>\n

What to do in the future<\/h2>\n

As mentioned earlier, the procedure for reclaiming the FBB is not clear and depends on the situation. The FAQ accompanying the circular lists the following 5 cases and what, according to the tax authorities, can still be applied:<\/p>\n