The imposition of branch remittance tax on income earned in France by a Hong Kong resident company was clarified by the Inland Revenue Department on 27 December 2012. Income earned in France by a foreign company is deemed to be distributed to a foreign resident under the French Tax Code and, in the absence of the treaty, a 25% withholding tax (branch remittance tax) is levied on that after-tax income as if it were dividends, unless the enterprise proves that the income taxed exceeds the amount of the dividends effectively paid or that the dividends are paid to French residents....