There is a difference in taxation between French users of Lend and other users. Below is a clear explanation of these differences:
🇫🇷 Taxation of yields for French investors
For users who are tax residents in France, yields generated on Lend are treated as interest income from bonds.
Under French tax law, this type of income is subject to the "Prélèvement Forfaitaire Unique (PFU)", commonly referred to as the flat tax.
The PFU is a fixed tax rate of 30 percent, composed of:
• 12.8 percent income tax
• 17.2 percent social contributions
This tax applies only to the yield received, not to the capital invested.
As the bond issuer, Lend is legally required to withhold and collect the PFU at source for French tax residents only.
This means that:
• The PFU is deducted before the yield is distributed
• The amount received by the user is already net of tax
• No additional action is required from the user for this withholding
🌎 Taxation of yields for non-French investors
For users who are not tax residents in France, the tax treatment is different.
Foreign investors are responsible for:
• Declaring their yields in their country of tax residence
• Understanding the applicable tax rate on bond or fixed income investments under local regulations
From a tax perspective, these yields are generally treated similarly to bond or stock market income, depending on local law.
For non-French investors:
• Lend does not withhold or collect any tax
• No tax is deducted at source
• The yield displayed on the platform is the net amount paid to the user
It is the responsibility of each foreign investor to comply with the tax rules of their jurisdiction and, if necessary, consult a local tax advisor.
