What is PFU (flat tax on dividends)?
The prélèvement forfaitaire unique (PFU), or flat tax, is the default tax on dividends and interest paid to an individual in France: 31.4% in 2026.
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Current Rate (Calendar year of payment.)
31.4%: 12.8% income tax and 18.6% prélèvements sociaux. The alternative is the income tax scale with a 40% abattement on dividends.
Example
A EUR 10,000 dividend under the PFU bears EUR 3,140 of tax and levies, leaving EUR 6,860.
How PFU (flat tax on dividends) works in France
The rate rose from 30% to 31.4% in 2026 because the CSG on capital income went from 9.2% to 10.6%. A taxpayer can opt for the scale, and then the 18.6% social levies still apply.
AccountsOS computes both options. Legal reserve and the AGO come first: a dividend needs distributable profit.
Related terms
A société par actions simplifiée (SAS) is a flexible company form. A SASU is a SAS with one shareholder. Both pay IS by default.
A société à responsabilité limitée (SARL) is a limited company with at least two members. An EURL is a SARL with one member. The majority gérant is a TNS, not an employee.
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