Interactive Brokers would like to inform clients of the French Financial Transaction Tax (FTT) enacted in March 2012 and which comes into force 1 August 2012. Key information regarding the tax is provided below:Note that this yet another tax, yet another act of spoliation and stupidity is not done by François Hollande's government, but by the supposedly right wing Nicolas Sarkozy.
Tax Rate: The rate is currently set at 0.20%
Tax Base: The tax is assessed on the purchase of certain French equities. The French Ministry of Finance has released a list of 109 French companies whose securities are subject to the FTT. The tax is due on the net position delivered on settlement date, as such purchases and sales which settle at a common depository will be eligible to be netted for determination of the tax.
Effective Date: The FTT is applicable to trades of August 1, 2012.
French Financial Transaction Tax Comes Into Force Today
From Interactive Brokers: