Welcome, THANK YOU for using Just Answer. My goal is to help make your life...a little...LESS taxing.
Are you a resident of France, or the U.S.? Based on an amended France finance law
in 2010, the following applies;
The acquisition gain arising from stock options (difference between the market value of the share at exercise and the exercise price) or RSUs (market value of the share at delivery) will now be subject, in the same way as employment income
paid to nonresidents
, to a mechanism of withholding
tax when the beneficiary
is a nonresident. François Baroin, the French Minister responsible for the Budget, stated that the new measure was “designed to improve the collection
and control of tax and simplify reporting
requirements for nonresidents”
Under current rules for French qualifying stock option and RSU plans, taxation
is deferred until sale. The withholding will apply at the sale of the share. The person responsible for withholding and paying the tax will be the one that has released the funds to the beneficiary further to the sale (i.e., in most cases, this will be the financial intermediary that will have held the shares in custody). the withholding amount is 30%.
As there is a tax treaty between the U.S. and France that eliminates double taxation
, you may be able to receive a credit
for taxes paid in the country of your residency. Article 24 of the treaty references double taxation. I am checking the treaty and the technical explanations to see if there is a section that specifically relates to your matter. I will get back with you soon. Thank you for your patience.