What is it?
Users who buy French stocks have to pay a tax of 0,3%, if:
The company that you trade has a market capitalization of more than 1 billion euro (find a list here).
You buy French stocks, but not if you sell French stocks. Besides, the tax is calculated on the buying price.
BUX automatically withholds this tax in the app for each BUY transaction you conduct with the relevant security. If any excess has been withheld, you will be refunded. You can find an example of a calculation here:
A user does the following trades with Air France/KLM during the same trading day:
He/she buys 100 shares at 12,10 EUR
Then he/she sells 40 shares at 12,50 EUR
The user needs to pay the tax on the volume of 60 shares (100-40) at the price he bought it.
The tax base is: 60 x 12,10 = 726 EUR
The tax is: 0.3%
So they need to pay: 726x0,003 = 2,17 EUR (amount of the tax)
To what stocks does the FFTT apply?
The French government publishes a new list of stocks to which FFTT applies on an annual basis in December. You can find the latest (and current) list here.