Knowledge Base
Explain the financial transaction tax
Which companies were added to the list of companies subject to the FTT for 2025?
The list of companies subject to the FTT is published annually by ministerial decree. For 2025, four new companies were added: Esso, Neurones, Wavestone, and Planisware. This list also includes large CAC 40 capitalizations and certain mid-cap stocks.
What is the mechanism used to calculate the tax on the net long position at end of day?
The netting mechanism allows the offsetting of purchases and sales of the same security occurring on the same day with the same settlement-delivery date. Only the net long position is taxed. For example, if an investor buys and partially sells on the same day, only the remaining net quantity is subject to the tax.
What is the current FTT rate applicable since April 1, 2025?
The 2025 Finance Act raised the FTT rate to 0.4% from April 1, 2025. This rate has evolved since its creation in 2012 when it was initially 0.2%, then increased to 0.3% in 2017. This increase raises the cost of transactions for investors.
What are the cumulative conditions for an acquisition to be subject to the Financial Transaction Tax (FTT)?
Under Article 235 ter ZD of the CGI, five cumulative conditions must be met: the acquisition must be for consideration, must involve a transfer of ownership, must concern equity securities admitted to a regulated market, the issuing company must be headquartered in France, and must have a market capitalization exceeding one billion euros. These criteria are essential for determining the scope of the FTT.
The tax on sovereign credit default swap (CDS) contracts is still in force in France in 2025.
This tax was abolished on January 1, 2019, as it was rendered moot by the European regulation banning naked positions on sovereign debt CDS. It was originally provided for in Article 235 ter ZD ter of the CGI.
Categorize items by dragging them to the appropriate zones
Items to categorize:
Revenue amount
Revenue destination
FTT revenues reached approximately 2.2 billion euros in 2023. Historically, a portion was allocated to development aid, but since 2025, most has been directed to the general budget. The United Kingdom collects approximately 5 billion euros through its Stamp Duty.
Entity responsible for collecting the FTT
Click to see answer
Euroclear France is the central securities depository approved by the AMF that handles FTT collection. Investment service providers submit monthly declarations to Euroclear, which centralizes the data and remits the amounts to the State through Agence France Tresor.
Complete intraday transactions (buying and selling the same quantity on the same day) are subject to the FTT.
Complete intraday transactions are not taxed because they generate a zero net position. Only the net long position at end of day is taxed. This preserves short-term trading activity while ensuring tax collection on lasting positions.