This option allows a UCITS to pay out a coupon. A UCITS can be a pure distribution fund, a pure capitalisation fund, a distribution and capitalisation fund (shares or units D and C) or the choice may be left until each financial year end.
A distributive UCITS is a UCITS for which the portfolio earnings are distributed periodically to holders of units, prorated based on their holding in the assets of the UCITS.
This is the part of the net income of a company that is distributed to a shareholder. A dividend tax credit is attached to the dividend.
Dividends on shares in France are entitled to a tax credit. The dividend tax credit is equivalent to half of the net dividend paid by companies. It was set up to avoid the double imposition of tax on dividends due to the company having already paid corporate income tax on its earnings. It must be added to earnings. The amount of the dividend tax credit is then deducted from gross tax by the Treasury.