As from 1 januari 2005 the ‘avoir fiscal’- a favourable regulation for receivers of dividends coming from French companies - is abolished. It was replaced by a new favourable regulation for dividends.
The administration declares in her comments on the new regulation that the persons who receive the dividends are taxable in France. The taxation differs whether or not the receivers have their fiscal domicile in France.
The new regulation seems considerable less favourable for non- inhabitants of France who receive dividends of French origin. Non- inhabitants are excluded from the halving of the tax base and from the tax- exempted amounts.

Source: Frédérique Jacquet en Renaat Van den Eeckhaut, in Fiscoloog Internationaal van 31 Oktober 2005, afl. 263, p.3-4.

In a judgment of 6 October 2005 the Court of Justice answered on a request of the commission to the question whether or not the French Republic has violated the community law by introducing a national rule limiting the deductibility of value added tax on the purchase of capital goods where they were financed by subsidies. The Court answered that exceptions on the right to deduct are only allowed in the circumstances described in the 6th VAT directive. By introducing a special rule limiting deductibility of value added tax on the purchase of capital goods where they were financed by subsidies, the French Republic has violated Community law. Read the full text of the judgment.