# What is PFU (flat tax on dividends)?

Country: France

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.

## 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.

Source: https://entreprendre.service-public.gouv.fr/actualites/A18796

## Related terms

- [SAS and SASU](https://accounts-os.com/fr/glossary/sas-sasu-france)
- [SARL and EURL](https://accounts-os.com/fr/glossary/sarl-eurl-france)