Avoir Fiscal Processing Examples

When companies that are receiving dividends from profits on which tax has already been paid by the distributing company receive a tax credit attempting to avoid double taxation on that income, it is called an Avoir Fiscal. The Avoir Fiscal is reserved for dividends paid out by French companies that are subject to corporate tax, and it is equal to 15% of the amounts distributed (when the shareholder is a legal person).

For Avoir Fiscal processing, you must set the rate's Tax Withholding Rate and Tax Reclaim Rate field values to 0, and must enter values in the Avoir Withholding Rate and/or Avoir Reclaim Rate fields. These fields, combined with the other entity and security master fields described, trigger Avoir Fiscal processing. The Avoir Fiscal fields are available in the Create Global Tax Rates panel and the Create Specific Global Tax Rates panel.

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Avoir Fiscal Posting on Ex Date for Gross Liability

The following table displays general ledger entries.

Avoir Fiscal Posting on Ex Date for Gross Liability: General Ledger Entries
	GL Account Number	GL Account	Calculation
Dr	1007000200	Dividend Receivable	(Shares * Dividend Rate) + (Shares * Dividend Rate * Avoir Fiscal Reclaim Rate * Avoir Fiscal W/h Rate)
Dr	1007001800	Avoir Fiscal Receivable	(Shares * Dividend Rate * Avoir Fiscal Reclaim Rate) - (Shares * Dividend Rate * Avoir Fiscal Reclaim * Avoir Fiscal Tax Withholding Rate) (Income * W/hold Rate)
Cr	2002000900	Dividend W/H Tax Payable	(Avoir Fiscal * Income)
Cr	4001000600	Dividend Income	(Shares * Rate)
Dr	5002000900	W/H Tax - Dividends	(Income * W/hold Rate)

Avoir Fiscal on Pay Date

Dr		1001000100		Cash
Dr		2002000900		Dividend W/H Tax Payable
	Cr		1007000200		Dividends Receivable

Avoir Fiscal Reclaim Pay Date

Dr		1001000100		Cash
	Cr		1007001800		Avoir Fiscal Receivable

Avoir Fiscal Posting on Ex Date For Net Income

Avoir Fiscal Posting on Ex Date for Net Income: General Ledger Entries
	GL Account Number	GL Account	Calculation
Dr	1007000200	Dividend Receivable	(Income) - (Income * W/h Rate)
Dr	5002000900	Dividend Tax Expense	(Shares * Dividend Rate * W/hold Rate) + (Shares * Dividend Rate * Avoir Fiscal Reclaim * Avoir Fiscal Tax Withholding Rate)
Dr	1007001800	Avoir Fiscal Receivable	(Shares * Dividend Rate * Avoir Fiscal Reclaim Rate) - (Shares * Dividend Rate * Avoir Fiscal Reclaim * Avoir Fiscal Tax Withholding Rate)
Cr	4001000600	Dividend Income	(Shares * Dividend Rate) + ((Shares * Dividend Rate) * Avoir Fiscal Reclaim Rate)

Avoir Fiscal on Pay Date

Dr		1001000100		Cash
	Cr		1007000200		Dividends Receivable
Dr		2002000900		Dividend W/H Tax Payable

Avoir Fiscal Reclaim Pay Date

Dr		1001000100		Cash
	Cr		1007001800		Avoir Fiscal Receivable