What is the French Financial Transaction Tax fee?

This is a foreign tax fee charged by CommSec in relation to foreign tax costs incurred by CommSec when a customer acquires Unibail Rodamco Westfield (URW) Chess Depositary Interests (CDIs). The fee passes on to customers the French Financial Transaction Tax costs incurred by CommSec on a monthly basis.

Skip to:

  • Background
  • How is the fee calculated?
  • How will the fee be charged?
  • Where can I find more information?

Background

In general terms:

  • The French Government taxes the purchase of stock in French companies with market capitalisations >EUR 1 billion.
  • Purchases of URW CDIs fall within scope of the French Financial Transaction Tax.
  • The tax is imposed on, and payable by, CommSec.
  • The French Financial Transaction Tax is calculated based on net daily units purchased. This means tax is incurred by CommSec when you buy more units of URW than you sell during the same day.
  • There is no French Financial Transaction Tax incurred from selling URW CDIs.

From 1 September 2021, CommSec will charge an additional fee to customers relating to French Financial Transaction Tax arising from a customer’s purchases of URW CDIs.


How is the fee calculated?

The amount of the fee payable equals the French Financial Transaction Tax paid by CommSec, plus GST. The fee is calculated at the end of each day (in AUD) using the below formula:

Fee = FFTT (being 0.3%1 * weighted average daily URW purchase price2 * net URW units purchased3 * URW apportionment4) plus GST5

1. The base French Financial Transaction Tax charge is 0.3%.

2. The customer’s weighted average BUY price of URW stock during the day.

3. The customer’s net units acquired during the day (i.e. units purchased less units sold).

4. URW-SE apportionment ratio (updated annually by URW – currently 99.895%).

5. GST will be included in the fee.

Already invested in URW? No need to worry. French Financial Transaction Tax is only payable when acquiring URW shares. If you already hold URW shares you can continue to hold these shares or sell them without incurring any fees.


How will the fee be charged?

The fee will be calculated daily but charged monthly, mid-way through the month following your trading. For example, if you are a net daily acquirer of URW during a trading day in September, you will be charged the fee in mid-October.

You will be charged via the standard settlement details listed on your account or via your margin loan.

An invoice will be sent to you using the same delivery method as your Contract Notes for executed trades.


Where can I find out more information?

 

Disclaimer

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