On February 16, 2026, the Council of State issued a major ruling (n°500909, Mr. A) regarding the deadline applicable to claims related to withholding taxes (WHT). Until then, taxpayers had only one year to file their claims. The administrative judge deemed this deadline unequal and contrary to the constitutional principle of equality before tax.

This decision, quickly followed by an update to the BOFIP on April 22, 2026, has significant practical implications, particularly for foreign companies or international groups receiving income from French sources.

PRAX Avocats analyzes this development, its concrete implications, and the opportunities it presents for companies, start-ups, and international investors.

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A Legal Context in Full Evolution

An Unequal Claim Deadline

For several years, article R. 196-1 of the Tax Procedure Book (LPF) provided a specific, shortened one-year deadline for claims related to withholding taxes on certain income (dividends, royalties, services, etc.).

This deadline deviated from the common law, which allows two years to contest a tax assessment.

The Council of State found that this difference in treatment was based on no legitimate public interest reason. In other words, taxpayers subject to WHT were unjustly disadvantaged compared to those taxed under income tax (IR) or corporate tax (IS) on income of the same nature.

A Compliance Requirement Imposed Within Three Months

By its decision, the High Court gave the Ministry of Finance three months to correct this illegality.

The BOFIP has since anticipated this evolution by removing all comments referencing the one-year deadline in its update BOI-CTX-DG-20-10-10 of April 22, 2026.

A regulatory modification is therefore imminent, likely aligning with the common law deadline, which is December 31 of the second year following the payment of the withholding tax.

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Practical Consequences for Companies and Investors

An Additional Year to Act

The significance of this evolution is very concrete.

For all withholding taxes levied in 2024, the claim deadline now extends until December 31, 2026, instead of December 31, 2025.

The main beneficiaries are:

Foreign companies that have suffered WHT on dividends distributed by a French company (article 119 bis of the CGI);

Non-resident service providers or intellectual property rights holders affected by article 182 B of the CGI (royalties, services, consulting);

Non-residents selling real estate in France, subject to a specific WHT on their capital gains.

A Strategic Opportunity for International Groups

For groups that let the previous one-year deadline expire, this reform opens a catch-up window on recently levied withholding taxes.

International groups can thus reassess their intra-group flows and identify any excessive withholding taxes to claim back.

Concrete example:

A French start-up that paid technical royalties in 2024 to a U.S. parent company can now, if it believes the WHT applied exceeds the level provided by the Franco-American tax treaty, file a claim until December 31, 2026 to obtain a partial refund.

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Points of Caution and Precautions to Take

A Favorable Change, but to Be Handled with Rigor

While the extension of the deadline clearly represents a tax opportunity, it must be exploited within the exact forms and deadlines.

Claims must be precise, justified, and accompanied by solid evidence (tax residency certificates, applicable tax treaties, proof of withholding, etc.). Any inaccuracy or error may lead to outright rejection by the administration.

Complex Interactions with International Taxation

For companies operating internationally, the claim procedure may interact with conventional mechanisms (for example, the amicable procedure between states provided by certain treaties to avoid double taxation).

A combined analysis of national and international texts is therefore necessary before any action, to secure the request and maximize its chances of success.

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How Companies Can Seize This Opportunity

Step 1 – Identify the Relevant Flows

List the payments subject to WHT over the past two years (dividends, royalties, service fees).

Step 2 – Verify Applicable Rates

Compare the WHT rate applied with the treaty rate provided by the applicable tax treaty. In case of a discrepancy, an excess may be eligible for refund.

Step 3 – Prepare the Claim

Compile a complete file including:

Proof of WHT payment,
Tax residency certificates,
Cited tax treaties,
Evidence demonstrating the excess withholding.

Step 4 – Submit the Claim on Time

As soon as the regulatory modification is formalized, the claim deadline will be consolidated to two years. For 2024 withholding taxes, submission is therefore possible until December 31, 2026.

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Support from PRAX Avocats

At PRAX Avocats, we assist companies—from innovative start-ups to international groups—in all matters of French and international taxation, as well as in business law.

Our approach combines legal precision, tax pragmatism, and tailored support.

Our teams monitor in real-time the developments of the BOFIP and the jurisprudence of the Council of State to anticipate their effects on your operations.

We also collaborate with a network of “Best Friends” firms on related aspects: labor law, intellectual property, or complex contracts, to provide an integrated response to your challenges.

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In Conclusion

The decision of the Council of State on February 16, 2026, and the update of the BOFIP on April 22, 2026, mark a significant advance in terms of tax equity.

For companies, it offers a new latitude to correct excessive withholding taxes and optimize their tax position.

However, this opportunity must be seized with preparation and expertise, given the technical formalities and the international context that often surrounds these flows.

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Contact PRAX Avocats, a specialist firm in French taxation in all its forms, as well as in international taxation and business law.

On issues of labor law, intellectual property, or complex contracts, we work closely with our partner “Best Friends” firms for comprehensive and secure support.

Council of State and withholding taxes: a new deadline for claims that changes the game.