What is it?
Users who buy French stocks whose companies have a market capitalization of more than 1 billion euro pay a 0.3% tax on the netted transactions in a security throughout that day (you pay tax on the netto increase in position per day). BUX automatically withholds this tax on each BUY transaction you conduct in a relevant security and refunds you at the end of the day for any excess FTT that may have been withheld. You can find an example of a calculation below.
A client does the following trades in Air France/KLM during 1 trading day:
Buy 100 shares at 12,10
Sell 40 shares at 12,50
The client needs to pay tax on the value of 100-40 = 60 shares at the price they bought it at.
So the client needs to pay tax over: 60 x 12,10 = 726 EUR
Tax = 0.3% so they need to pay 726x0,03 = 2,17 EUR in FTT
To what stocks does the FFTT apply?
The French government publishes a new list of stocks to which FTT applies on an annual basis in December. You can find the latest (and current) list here.