Clifford Chance
The Financial Transactions Tax introduced in France
14 March 2012
The legislation on French Financial Transactions Tax (FTT) included in the First Amending Finance Bill for 2012 was definitely adopted by the French Parliament on 29 February.
Three different taxes are introduced as from 1 August 2012. These relate to (i) the acquisition of listed shares issued by large French companies, (ii) high frequency trading and (iii) certain credit default swaps (CDS) on sovereign debt.
The FTT on acquisition of listed shares issued by large French companies is due irrespective of the tax residence of the parties involved (French or foreign seller or purchaser).
The FTTs on high frequency trading and sovereign CDS aim at penalizing what is considered harmful behavior by frequency trading operators and speculation on sovereign debt. These taxes apply only when the activities are performed in France.
