1.2 FIXED RATE INCOME TAX PAID ASA FLAT TAX WILL BECOME DEFINITIVE, EXCEPT IF TAXATION ON A PROGRESSIVE SCALE IS CHOSEN.
Case 1: your dividends are subject to the 12.8% flat income tax (PFU)
A shareholder who in 2022 is entitled to a 2.64 dividend per TotalEnergies share and who owns 500 shares not held in a PEA, will receive a net dividend of 924. A 30% flat tax, i.e. 396, will be withheld at source (without any tax allowance or deduction of share acquisition or retention costs) from the gross dividend revenue of 1,320 (500 x 2.64).
Case 2: You can choose to have your dividends taxed under the ordinary income tax regime (progressive scale).
If you consider it more advantageous, you can choose this option when filling out your annual income tax return.
This option has to be done on an annual basis. The option is irreversible and applies to all income that falls within the scope of the PFU (i.e. including dividends and capital gains on the sale of shares)..
Your dividends will be included in your annual income after application of a 40% tax allowance and deduction of the share acquisition and retention costs. They will be subject to the progressive scale income tax rate applying to all your annual income.
In both cases, the 12.8% flat rate levy withheld at source on your dividends will be deducted from taxes due, and any excess will be reimbursed to you.
1.3 DIVIDENDS MUST BE REPORTED INYOUR ANNUAL INCOME TAX RETURN Your dividends are considered as income and must be reported in your annual income tax return, whatever the taxation regime chosen (PFU or progressive scale). In practice, your annual income tax return will be prefilled with the information provided by your bank and it will be up to you to check the amounts.
1.4 DIVIDENDS ARE SUBJECTTO SOCIAL CONTRIBUTIONS These social contributions are withheld at source by
the bank (even when the shareholder is exempted from the 12.8% income tax levy withheld at source). They are applied to the gross dividend amount at the overall rate of 17.2%(1).
However, 6.8% of the CSG (out of 9.2%) is deductible from the taxable income in the year of the payment, but only if you have chosen to have your dividends subject to the ordinary income tax regime (progressive scale).
N.B. Taxpayers registered with a social security regime in the European Economic Area (excluding France) or in Switzerland are exempt from CSG and CRDS but remain subject to the new social security payment withheld at the rate of 7.5%
The bank that manages your shares will send you every year a specific form (called Imprimé Fiscal Unique or IFU ) summarizing the amounts to be declared as dividends in your income tax return. For pure registered shareholders, the IFU for the fiscal year 2022 is sent in 2023 by Société Générale Securities Services.
(1) CSG: 9.2%; CRDS: 0.5%; New social security payment: 7.5%
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