Last updated 2026-06-27

Withholding Tax (WHT)

Withholding tax is a tax deducted at source by the payer of investment income — such as dividends or interest — before the net amount is paid to the investor. The payer remits the deducted tax directly to the local tax authority. Standard rates range from 10% to 35% depending on the country.

Withholding tax applies to cross-border investment income. When a French company pays a dividend to a German investor, France deducts its standard 12.8% WHT before transferring the remainder. The investor receives 87.2% of the declared dividend. If a bilateral tax treaty sets a lower rate (e.g. 15%), the investor can claim a refund of the excess from the French tax authority.