French Parliament agrees with proposal to increase Financial Transaction Tax

KAS BANK 

KAS BANK NewsFlash 29 December 2016

The French Parliament (National Assemblée) agreed on the increase of the French Financial Transaction Tax (FFTT) from 0.2% to 0.3% (see our NewsFlash of 28th October 2016). The final reading of the French Finances law is still to be approved by the French constitutional court. The proposal to extend the scope of the FFTT to intraday transactions (high frequency trading) has been turned down.

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Impact
All parties currently active on the French financial market and stock exchange have to adjust their FFTT declaration as of January 1st, 2017 with the new tax percentage of 0.3% in order to report the correct taxes in due time. Your declaration and taxes will be in time when you have reported and paid your taxes on the 4th calendar day of the month following the transactions. Late payment may lead to an interest fine with a minimum of 90 euros. For the record, the process of sending and paying declarations and taxes will remain as it is now.
More information
For more information about the French and EU FTT, please contact your Service Manager or our FTT Task Force consisting of Marc Weijkamp (Senior Specialist, Custody and Tax) and Henk Brink (Senior Market Intelligence Specialist).