Dividend, Tax and Bonus shares attribution

What will be the distribution for fiscal year 2019?

The Annual Shareholders’ Meeting held on April 20, 2020, approved the distribution of an ordinary dividend of €0.60 per share with respect to 2019.
The payment timetable of the balance is as follows:
– Ex date: April 21, 2020
– Payment date: April 23, 2020

Dividend and distribution history (click here)

 

On what date do I have to own Vivendi shares to qualify for dividend or distribution payment?

To receive the dividend or the distribution paid by the company, you must own your shares before the Ex-date.

 

What is the tax treatment of dividends paid by Vivendi to French residents individuals*  

[Shareholders must be aware that the information provided is simply a summary of the tax system applicable to them in the current state of tax law, and that their specific situation will need to be examined with their tax advisor] 

 If you are a tax resident in France, your dividends must be declared in your annual tax return. 

 When your banking establishment is in France, it automatically sends you a document entitled Imprimé Fiscal Unique” or “IFU” summarizing the amounts to be declared as dividends in your annual tax return. 

 

  • Dividends paid to Vivendi individual shareholders that have their actual residence in France are subject to a 30% flat tax (so-called Prélèvement forfaitaire unique” or PFU) withheld at source from their gross amount. 

This flat tax levy includes: 

Social contributions at a global rate of 17.2%. 

Personal income tax at a rate of 12.8% 

 The 12.8% levy on your dividends will be unique and final unless, when filling in your annual income tax return, you choose to have all your dividends and capital gains taxed on the progressive taxation system. 

 

 

  • When they file their annual income tax return, taxpayers can opt for taxation on the progressive income tax schedule. The 12.8% levy withheld at source will be then considered as an advance payment that will be deducted from the global income tax due.  

This option is global and irrevocable and concerns all of the taxpayer’s income from investment income.  

A reduction (allowance) of 40% on the gross dividend is then applicable, only with this option. 

Nota bene: whatever the option chosen, the various social contributions remain due. 

* : These provisions apply only to dividends paid outside specific tax frameworks such as the PEA 

How can I be exempt from the withholding tax* of 12.8%? 

Taxpayers residing in France whose taxable income is less than EUR 50,000 (in the case of single, divorced or widowed taxpayers) or EUR 75,000 (in the case of taxpayers taxed jointly as a household) may request an exemption from the 12.8% deduction. 

An exemption request must be submitted, under the taxpayer’s responsibility, no later than 30 November in the year preceding that of the dividend payment, to the bank where the shares are deposited. 

* : This provision applies only to dividends paid outside specific tax frameworks such as the  socalled “Plan d’épargne, PEA 

Nota bene: even with this tax exemption, the various social contributions remain due. 

Are dividends paid to non-residents subject to income tax in France? 

[Shareholders must be aware that the information provided is simply a summary of the tax system applicable to them in the current state of tax law, and that their specific situation will need to be examined with their tax advisor] 

Dividends paid to Vivendi individual shareholders that do not have their actual residence in France are subject to a withholding tax in France. The withholding tax rate is usually 12.8% for dividends. 

This rate is upped to 75% for dividends paid outside France in a non-cooperative state or territory (NCST). An annual list of NCSTs is drawn up in an order published each year by French tax authorities. 

Under the provisions of international tax treaties signed by France, the withholding tax rate may be reduced or even zero-rated. 

N.B. : For any clarification on the tax regime applicable to Vivendi distributions, shareholders are urged to contact their personal tax adviser. 

 

How can I recover part of the withholding tax in France if I am a non-resident? 

Non-residents who wish to recover part of the French withholding tax under the provisions of an international tax treaty must use the following forms, which come in two bundles: 

  • The first bundle is for certifying one’s tax residency. It consists of five identical forms: two in French (reference no. 5000-FR-SD), Dutch (reference no. 5000-NL-SD), English (reference no. 5000- EN-SD), Spanish (reference no. 5000-ES-SD), Italian (reference no. 5000-IT-SD), and German (reference no. 5000-DE-SD). 
  • The second bundle is for liquidation of the withholding tax and for reimbursement of the tax credit. It consists of five identical forms: two in French (reference no. 5001-FR-SD), Dutch (reference no. 5001-NL-SD), English (reference no. 5001-EN-SD), Spanish (reference no. 5001-ES-SD), Italian (reference no. 5001-IT-SD), and German (reference no. 5001-DE-SD). 

Applicants can receive an information leaflet in French (reference no. 5000NOT-FR-SD), Dutch (reference no.5000NOT-NL-SD), English (reference no. 5000NOT-EN-SD), Spanish (reference no. 5000NOT-ES-SD), Italian (reference no. 5000NOT-IT-SD), or German (reference no. 5000NOT-DE-SD) explaining all the steps you need to take to recoup withholding tax. 

You can obtain these forms: 

  • From the tax authorities in your country of residence 
  • Through the non-resident tax center (Centre des impôts des non-résidents, 10 rue du Centre, 93465 Noisy-le-Grand, France) 
  • On the website of the French tax authority, www.impots.gouv.fr (under “formulaires Cerfa 12816*03”) 

What is the dividends and capital gains tax regime for shares held in PEA? 

 

The PEA (or “Plan d’épargne en action”) is a tax incentive regime that allows taxpayers residing in France to be tax exempt on dividends and capital gains on a portfolio of European shares held in a PEA, provided that no withdrawals are made within a minimum period of five years from the first deposit of cash on this account. 

 A PEA can be opened by an adult in a bank with cash payments only and with a maximum cash investment of € 150,000 (no legal minimum initial deposit required).  

 Children over 21 (or under 25 if they are students), as well as people with disabilities, whatever their age, can hold a PEA in their name, if they are attached to the tax household of their parents (or legal guardian). 

For these persons attached to the parents’ tax household, the maximum legal deposit in their own PEA is € 20,000 and at the end of their attachment, this maximum is raised to € 150,000. 

Shares acquired in a PEA can only be paid with the cash available in the PEA and must be eligible for that type of account (Vivendi shares are eligible to a “Plan d’épargne en actions, PEA”) 

The tax consequences of withdrawals are as follows: 

 -if your holding period is less than five years, the capital gain attached to the amount withdrawn will be taxed at the rate of 12.8% unless you opt for taxation on the progressive scale of income tax. The PEA is automatically closed. 

 – if your holding period is five years or more, the capital gain attached to the amount withdrawn will not be taxed and the PEA is not closed except in the case where the withdrawal completely empties the PEA. 

 However, in both cases, social security contributions are due at the overall rate of 17.2%. 

 [Shareholders must be aware that the information provided is simply a summary of the tax system applicable to them in the current state of tax law, and that their specific situation will need to be examined with their tax advisor] 

 

Bonus shares attribution 

 Is there any bonus shares attribution? 

At its meeting held on February 29, 2012 and following the Supervisory Board’s advice, Vivendi’s 

Management Board decided to grant to shareowners as from May 9, 2012 one bonus share per 

30 shares held, by a withdrawal from reserves. 

 Record date: May 8, 2012. 

 Allocation date: starting May 9, 2012. 

 No trading of fractional rights 

The shareholders who had not the whole number of shares depending on the parity 1 to 30, 

received compensation in cash for the fractional rights in June,2012. 

 

Tax (for non-residents of France) 

No taxation at the attribution. 

No taxation of capital gains in France 

N.B.: In your country of residence, capital gains could be taxed and you are urged to contact your personal tax adviser to obtain more information about your situation. 

 

Tax (for residents of France) 

No tax upon receipt of shares. In the event of sale outside the scope of the PEA, the capital gain will be subject to capital gains tax for French residents at the rate of 30% (Including an income tax of 12.8% and social contributions at the overall rate of 17.2%) or taxation at the progressive income tax scale if you opt for this scheme when filling in your income tax return. 

 

How much tax do I have to pay if I sell** my Vivendi shares? 

 Capital gains obtained outside of a PEA must be reported on your annual tax return.  

They will be subject to capital gains tax for French residents at the rate of 30% (Including an income tax of 12.8% and social contributions at the overall rate of 17.2%) or to taxation at the progressive income tax scale if you opt for this scheme when filling in your income tax return. 

 

**[Shareholders must be aware that the information provided is simply a summary of the tax system applicable to them in the current state of tax law, and that their specific situation will need to be examined with their tax advisor]