France: French government to propose new financial transaction tax

This Taxflash is intended to provide customers with general information gathered from different sources that are generally believed to be reliable. Clearstream Banking S.A. does not guarantee the accuracy or completeness of the information and does not undertake to keep it up to date. Use of the information made available in this Taxflash is at the customer’s own risk and Clearstream Banking S.A., its subsidiaries and affiliates expressly disclaim any liability for any errors or omissions reflected herein. The information in this Taxflash does not constitute legal or tax advice.

It has recently been announced that the French government intends to issue a proposal introducing a 0.1% financial transaction tax.

The new tax would apply to transactions in, among other instrument types, French listed shares and Credit Default Swaps.

The French President has stated that the tax would be implemented in France regardless of whether or not the European Union agrees to implement its own financial transaction tax.

If such proposal becomes law, it is expected that the French financial transaction tax would be effective from 1 August 2012.

We will continue to monitor the French market and provide more information as it becomes available.