Avoir Fiscal Processing Examples
- Nancy Cohn (Deactivated)
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.
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 | Â | 1001000100 | Â | Cash | Â |
Dr | Â | 2002000900 | Â | Dividend W/H Tax Payable | Â |
 | Cr |  | 1007000200 |  | Dividends Receivable |
Avoir Fiscal Reclaim Pay Date
Dr | Â | 1001000100 | Â | Cash | Â |
 | 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 | Â | 1001000100 | Â | Cash | Â |
 | Cr |  | 1007000200 |  | Dividends Receivable |
Dr | Â | 2002000900 | Â | Dividend W/H Tax Payable | Â |
Avoir Fiscal Reclaim Pay Date
Dr | Â | 1001000100 | Â | Cash | Â |
 | Cr |  | 1007001800 |  | Avoir Fiscal Receivable |