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Macron rebuffs 4% dividend tax for green transition financing

France
On the 06/29/20 at 2:36PM

by

Adrien Paredes-Vanheule

Taxing company dividends at 4% is not an option considered by French president Emmanuel Macron to finance France's green transition. The proposal, which would have applied to firms paying over €10m in dividends a year to shareholders, was one of the three he rejected among the 149 submitted by the French citizens' convention on climate. The convention consisted of a panel of 150 French citizen reflecting on ways to combat climate change and submitting related legislative and regulatory proposals to the president.

"I disagree on the 4% dividend tax proposal. I do not say that we must not partly redirect investments towards greener investments but implementing a tax on all investments reduces our chances to attract additionnal investments," the French president said, adding that local companies needed both French and foreign capitals to innovate and shift model.

In 2012, under François Hollande's first government, a 3% tax on dividends had been created before it was removed in 2018 since it was legally invalidated.

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