What is the PFU flat tax on dividends in France?
The PFU is 31.4% in 2026: 12.8% income tax and 18.6% social levies. You can opt for the income tax scale with a 40% abattement, and the 18.6% levies still apply.
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Detailed Explanation
## The rates
The PFU rose from 30% to 31.4% in 2026 because the CSG on capital income went to 10.6%. The 2026 scale (2025 income) is 0% to EUR 11,600, 11% to EUR 29,579, 30% to EUR 84,577, 41% to EUR 181,917 and 45% above.
## Before the dividend
A dividend needs distributable profit after the AGO approves the accounts, paid within 9 months of year-end. The legal reserve takes 5% of profit until it reaches 10% of share capital.
## SARL and EURL
A majority gérant's dividends above 10% of capital, premium and current-account balances bear TNS contributions. The SAS président's dividends do not.
## How Finn helps
Finn computes the PFU and the scale and shows the net.
Source: https://entreprendre.service-public.gouv.fr/actualites/A18796
Real-World Examples
EUR 10,000 dividend
Under the PFU, EUR 3,140 of tax and levies and EUR 6,860 net.
Common Mistakes to Avoid
- Paying a dividend before the AGO
- Forgetting the 10% rule in an SARL
Frequently Asked Questions
Which option is cheaper?
It depends on your other income. Finn shows both.
Practical Tips
- Pay dividends after the AGO and within 9 months
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