New compulsory bonus due to employees upon dividend distributions

European Tax Newsalert

On July 13, 2011, the French Social Security Act FY11 was passed by the French National Assembly. The Act introduced a new 'bonus for value added sharing' measure (prime de partage de la valeur ajoutee), requiring French companies to pay a bonus to all employees when dividends paid to shareholders have increased compared to the average dividend paid over the previous two fiscal years.



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