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Old 08-01-2017, 05:15 PM
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French company dividends

Hi,
I am a French woman living in US since beginning of 2017.
I have a French company which is about to distribute dividends. However, I ve understood that from a French standpoint a 15% withholding tax would be applied. Do you know if this withholding tax will create a US tax credit for me?
I've seen a French article saying that but I am not sure (for those who an speak French, thanks for having a look at this article and tell me if I can rely on).
https://avocatdroitfiscal.paris/impo...-de-dividendes
Thanks in advance.
Regards,



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Old 08-02-2017, 06:15 AM
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All Non US Persons are subject to US tax at a rate of 30% on income they receive from US sources, such as dividends on US securities. If you reside in a country that has a double taxation treaty agreement with the US, you can avail of a reduced rate of tax deducted, generally 15%.
To avail of this reduced rate of tax, payer in US must ask you to complete a US tax form of W-8BEN, This US tax is also charged on sales of US securities for Non US Persons at a rate of 30%. For a person residing in a country, that has a double taxation treaty agreement with the US, the rate of tax is reduced to 0%. Ireland, the UK and most other EU countries are among the countries that have a double taxation treaty with the US.you need to file your US return to get refund



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Old 08-02-2017, 10:42 AM
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US residency

Many thanks for your prompt and clear answer.
This takes me to another question that I have been wondering for a while now : the US tax residency.
I saw on a famous french tax lawyer website that in order not to pay taxes in France on dividends the tax payer must not be a taw resident of France. It is written here (I am not sure if I have well understood everything).https://avocatdroitfiscal.paris/fisc...internationale

My goal is to become as soon as possible tax resident of US. I will get a significant amount of dividends twice a year from a french corporation, I would not like to be considered both tax resident of France and US, and pay double taxes...
What criteria must I fulfill in order to be seen as a US tax resident ?
Many thanks in advance.



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Old 08-03-2017, 01:07 AM
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Quote:
Originally Posted by DianaUS View Post
Many thanks for your prompt and clear answer.
This takes me to another question that I have been wondering for a while now : the US tax residency.
I saw on a famous french tax lawyer website that in order not to pay taxes in France on dividends the tax payer must not be a taw resident of France. It is written here (I am not sure if I have well understood everything).https://avocatdroitfiscal.paris/fisc...internationale

My goal is to become as soon as possible tax resident of US. I will get a significant amount of dividends twice a year from a french corporation, I would not like to be considered both tax resident of France and US, and pay double taxes...
What criteria must I fulfill in order to be seen as a US tax resident ?
Many thanks in advance.
My goal is to become as soon as possible tax resident of US. I will get a significant amount of dividends twice a year from a french corporation, I would not like to be considered both tax resident of France and US, and pay double taxes...=======>> If you are a resident alien for tax purposes, you are treated like a U.S. citizen when it comes to tax questions You are a US resident for TAX PURPOSES;then, The IRS/your home state imposes its Income Tax on you based on your worldwide income. It does not matter where you live, so you must report your US source and world wide income on your US return.as a US resident for tax purposes, you usually claim taxes paid to French taxing authorities on your US returns.




What criteria must I fulfill in order to be seen as a US tax resident ?=========>Basically it depends on your visa status/type; what I mean is that

You are a ?tax resident? of the US. You can become a tax resident under the SPT rule: The ?substantial presence test?. This is a ?day count test and based on the number of days you are in the US over a three year period. To meet this test, you must be physically present in the US on at least:
1. 31 days during the current year, and
2. 183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting:
1. All the days you were present in the current year, and
2. 1/3 of the days you were present in the first year before the current year, and
3. 1/6 of the days you were present in the second year before the current year.



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Old 08-03-2017, 02:58 AM
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Many thanks for your quick and very detailed reply!!



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Old 08-03-2017, 08:06 AM
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Quote:
Originally Posted by DianaUS View Post
Many thanks for your quick and very detailed reply!!
good luck to you~~



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