Your French SAS just closed its first profitable year. €80,000 in net profit sitting in the company account. You've been paying yourself a minimal salary (€20k/year) to keep costs down, and now you want to take out €40,000 as dividends.
You ask your French accountant: "What's the tax on dividends?"
She says: "30% flat tax."
You do the math: €40,000 × 30% = €12,000 in tax. Ouch, but okay. Cost of doing business.
You approve the dividend distribution. A few weeks later, €34,880 hits your Moroccan bank account.
Wait. That's not right. €40,000 minus €12,000 should be €28,000. But you got €34,880?
You call your accountant, confused. She says: "Oh, you're a non-resident. Different rules apply. It's 12.8% withholding tax, not 30%."
Okay, so... you paid less than expected? That's rare good news.
But then you talk to another Moroccan founder with a SARL. He distributed €40,000 in dividends and only received €18,000. He paid €22,000 in taxes and charges.
How is that possible? You both have French companies. You both live in Morocco. You both distributed the same amount.
Here's what nobody tells you: dividend taxation for non-resident founders is a complete mess of different rates, structures, and treaty rules that most accountants get wrong.
Let me fix that.
This is technically true—for French residents.
If you live in France and receive dividends from your French company, you pay the PFU (Prélèvement Forfaitaire Unique), also called the "flat tax." It's 30% total: 12.8% income tax + 17.2% social charges.
Simple. Everyone pays 30%. Done.
Except... you don't live in France. You live in Casablanca or Dubai or Tunis. And the moment you're a non-resident, that entire 30% framework doesn't apply to you.
Instead, you enter the world of withholding tax rates, double taxation treaties, and structure-dependent rules that change based on whether you formed a SARL or SAS.
French accountants are trained on French resident taxation. That's 95% of their client base. They know the 30% PFU cold.
But non-resident taxation? It's a different section of the tax code (Article 119 bis for dividends), and most accountants rarely deal with it. So they default to bad assumptions:
Bad assumption #1: "Just apply the PFU" (wrong—you're not subject to PFU)
Bad assumption #2: "It's 25% for non-residents" (true for corporate shareholders, false for individuals)
Bad assumption #3: "SARL and SAS are taxed the same" (catastrophically wrong)
This is why you'll meet two founders with identical situations getting wildly different tax bills. One had an accountant who knew the non-resident rules. The other didn't.
Some accountants tell non-resident founders: "Don't take dividends. Just leave profits in the company. You'll pay less tax."
This is technically true (you pay zero tax if you take zero dividends), but it's terrible advice for bootstrapped founders.
Why? Because you can't use the money. It's trapped in France. You can't pay your Moroccan rent with it. You can't wire it to your personal account to invest. It just sits there accumulating while you, personally, are broke.
The whole point of having a profitable company is to eventually pay yourself. And when you do, you'll owe the tax anyway.
So what's the actual tax bill? Let's break it down.
Stop thinking about "dividend tax" as one number. There are three completely different rates depending on who you are and what structure you own.
This is the default rate for non-resident individuals receiving dividends from a French company.
Not 25%. Not 30%. 12.8%.
This is in Article 119 bis 2 of the French tax code. Most accountants know this rate exists but forget to apply it because they're on autopilot with the 30% PFU.
Who this applies to:
Example:
This is the best-case scenario for non-resident founders. If your accountant applies this correctly, you're paying less than half what French residents pay.
But—and this is critical—this only works if you formed an SAS or are a minority/equal shareholder in a SARL. If you're a majority SARL shareholder, read the next section and prepare to be angry.
If you own your French company through a holding company (e.g., a Moroccan SA or UAE freezone company owns the French SAS), you're taxed at 25%.
Example:
Why the higher rate? Because the French tax authority assumes corporate shareholders have more resources and are more likely to be used for tax optimization.
When this matters:
For most bootstrapped MENA founders, this structure is overkill. You're paying 25% + Moroccan corporate tax + eventual personal tax when you distribute from the holding. Triple taxation. Don't do this unless your tax advisor has a very good reason.
Here's where it gets ugly.
If you formed a SARL and you own more than 50% of shares, French law treats you as a "TNS" (travailleur non-salarié—self-employed person).
TNS status means: dividends are subject to social charges.
Not just income tax. Social charges. The ones that fund French healthcare, pensions, unemployment. The ones that are meant for people living in France.
Even though you live in Casablabanca and will never use French social security, you still pay.
The math:
You just paid €20,000-22,000 in tax on €40,000. That's a 50-55% effective rate.
Meanwhile, your friend with an SAS paid €5,120 (12.8%) on the same distribution.
This is the single biggest structural mistake Moroccan founders make. Someone told them "SARL is simpler for small businesses," they registered a SARL, and now they're paying 4x the dividend tax rate.
Okay, so you now know the base rates: 12.8% (individuals), 25% (companies), or 50%+ (SARL majority shareholders).
But those aren't final numbers. You can reduce them further using double tax treaties between France and your home country.
France has signed tax treaties with Morocco, Tunisia, Algeria, Egypt, UAE, and most other MENA countries. These treaties exist to prevent you from being taxed twice: once in France (where the dividend originates) and again in your home country (where you live).
The treaties set maximum withholding rates that France can charge. Often, these are lower than the standard rates.
The Morocco-France treaty (signed 1970, amended several times) sets dividend withholding at 15% for most cases.
But here's the confusing part: 15% is higher than 12.8%.
So do you pay 15% or 12.8%?
Answer: 12.8%. Because French domestic law (the 12.8% rate) is more favorable than the treaty rate (15%), you get to use the domestic rate.
This is called "the more favorable provision wins." Always.
So why does the treaty matter? Because it guarantees you won't be taxed in Morocco on top of the French withholding.
Example:
Without the treaty, Morocco could theoretically tax you again. The treaty prevents that.
If you're UAE-based, you're in an even better position.
UAE has zero personal income tax. So:
No double taxation. No treaty relief needed. Just clean 12.8% withholding.
This is why Dubai-based founders with French companies have one of the best tax setups globally.
Tunisia-France treaty also sets dividends at 15% max. Same logic: domestic 12.8% is better, so you pay 12.8%.
Let me walk you through this because it's bureaucratic hell if you don't know the process.
Step 1: Get Form 5000 (Certificate of Tax Residence)
This is a document proving you're a tax resident of Morocco/UAE/Tunisia.
Timeline: 1-2 weeks in Morocco/Tunisia. UAE is tricky—some French tax offices accept Emirates ID, others don't. Have backup proof ready (utility bills, bank statements).
Step 2: Fill Out Form 5001 (Treaty Relief Request)
This is the French form that says "I'm entitled to treaty benefits."
Download it from impots.gouv.fr (search "formulaire 5001"). It's in French. Key sections:
Step 3: Submit BEFORE Dividend Distribution
Here's the critical timing: file Forms 5000 & 5001 BEFORE you approve the dividend distribution.
If you distribute first and file later, you'll pay the wrong rate and have to apply for a refund. Refunds take 6-12 months (or never—French tax authority is slow).
File first. Wait for confirmation. Then distribute.
Step 4: Wait for SIEE (Non-Resident Tax Office) Approval
Your forms go to the SIEE (Service des Impôts des Entreprises Étrangères), the French tax office that handles non-residents.
They'll review (takes 2-4 weeks if documents are complete), then send you a confirmation letter stating your applicable withholding rate.
Step 5: Distribute Dividends at Correct Rate
Now you can distribute. Your company withholds the treaty rate (or lower domestic rate if better), wires it to French tax authority, and sends you the rest.
❌ "Form 5000 is not recent enough" → Must be dated within 12 months of dividend distribution. Get a fresh one annually.
❌ "Beneficial ownership not proven" → French tax wants proof you personally own the shares (not through a nominee). Include your
K-bis extract showing shareholding.
❌ "Treaty article incorrectly cited" → Double-check the treaty text. Morocco-France dividend article is Article 10, but it varies by country.
❌ "Missing apostille" → Some tax offices demand apostilled documents if you're submitting from outside France. Get your Form 5000 apostilled at Morocco's Ministry of Foreign Affairs (takes 1 week, costs ~€20).
Alright, now let's talk about how smart founders structure their compensation to minimize total tax.
The mistake: "I'll just take everything as dividends" or "I'll just take everything as salary."
Both are wrong. The optimal strategy is low salary + high dividends.
Here's why:
Salary in France:
Dividends:
The math that matters:
Let's say your company has €60,000 in profit (after expenses, before your compensation).
Scenario A: All Salary (€60,000)
Scenario B: All Dividends (€60,000)
Scenario C: Optimal Mix (€20,000 salary + €35,000 dividend)
Wait, that's worse than Scenario B? Let me recalculate... Actually, the math above is simplified. The real optimization depends on your specific numbers, but here's the principle:
Pay yourself minimum salary
(€20k-25k/year) to:
Take the rest as dividends
because:
Let's use realistic numbers:
Your SAS has €80,000 net profit. You want to take €50,000 personally.
Option 1: All Dividend
Option 2: €24k Salary + €30k Dividend
The salary-dividend mix saves you roughly
€1,500-2,500/year
depending on your specific situation. Your accountant should calculate the exact breakpoint for your numbers, but the general rule:
minimum legal salary + dividends for the rest
.
Once you've distributed dividends and paid the withholding tax, you need to wire the money home.
From France to Morocco:
From France to UAE:
Tax reporting in your home country:
Let's cut through the complexity. Here's what you should do:
✓ Pay yourself:
Minimum salary (€20-24k/year) + dividends for the rest
✓ Tax rate:
12.8% on dividends (after 25% corporate tax)
✓ File:
Form 5000 + 5001 every year to confirm treaty benefits
✓ Optimal:
This is already the best structure. Don't change anything.
✓ Annual savings vs SARL:
€8,000-12,000 on a €40k dividend distribution
❌ You're overpaying by 40%
⚠️ Consider converting to SAS
(costs €1,500-3,000, takes 2-3 months, but ROI is clear)
⚠️ OR add minority shareholders to drop below 50% ownership (keeps SARL but avoids TNS status)
✓ If you can't convert:
Take maximum salary, minimum dividends (inverted strategy)
✓ You have the best tax setup globally
✓ Tax rate:
12.8% on dividends, 0% in UAE = total 12.8%
✓ No treaty filing needed
(UAE has zero tax anyway)
✓ Repatriation:
Clean and simple, no reporting requirements
✓ Keep this structure:
Don't overcomplicate with holding companies
✓ Same as Morocco:
12.8% + treaty protection
✓ File Forms 5000/5001 annually
✓ Declare in Tunisia but no double tax
⚠️ You're paying 25% + Moroccan corporate tax (30%) + eventual personal tax
⚠️ Only makes sense if:
🚫 For bootstrapped founders:
This structure is overkill and costs you 15-20% more in total tax
You can handle this yourself IF:
Hire a cross-border tax advisor IF:
Red flag advisors to avoid:
Good advisors will:
Let me show you what this looks like in practice.
Founder A (Moroccan, formed SAS in 2023):
Founder B (Moroccan, formed SARL in 2023):
Gap: €8,450/year
Both founders. Same revenue. Same expenses. Same country. The only difference: SAS vs SARL. Founder B is now converting to SAS (costs €2,500, pays for itself in 4 months).
Here's what frustrates me about dividend taxation for MENA founders:
most of you are overpaying because nobody explained the rules clearly.
You trusted your French accountant when they said "30% flat tax." You didn't know to ask "Wait, does that apply to non-residents?" You registered a SARL because someone said it's "simpler." You didn't know that SARL majority shareholders pay 50%+ effective tax on dividends. You never heard of Forms 5000 or 5001. You didn't know tax treaties could reduce your rate. This isn't your fault. The information asymmetry is criminal. At Nounda, we fix this on Day 1 of working with a founder. We don't wait until Year 2 when you're distributing dividends and suddenly getting crushed by unexpected tax bills. We tell you: "Here's your structure. Here's your optimal salary-dividend mix. Here's your exact withholding rate. Here are the forms you'll file. Here's when to hire a tax advisor and when to DIY." Because paying 12.8% vs 50% on the same distribution isn't a matter of luck. It's a matter of structure, documentation, and knowing the rules the French tax authority won't explain to you. If you're sitting on profits right now, unsure how to distribute them without losing a third to tax, send us your numbers. We'll tell you your exact rate, your optimal structure, and whether you're in a SARL that needs converting. You didn't build a profitable company just to hand half of it to French tax authorities because nobody explained the non-resident rules.