Taxation on capital gains for shares not held in PEA(1)(2)
1You are a French tax resident YOUR CAPITAL GAINS ARE SUBJECT TO THE FLAT TAX (PFU)
Net capital gains on sale of shares (i.e. capital gains minus capital losses on share transfers incurred in the same tax year or in previous years, up to the tenth year included) realized by individuals residing in and subject to taxation in France, are subject to an income flat tax rate of 12.8%.
This rate applies without any allowance for holding period. Taxed capital gains are also subject to social contributions (see point 1.4 below).
A shareholder sells TotalEnergies shares for a price of 3,000 in 2022 while he acquired them in 2012 for a price of 2,500. He therefore realizes a capital gain of 500 that he must report in his 2023 tax return relating to 2022 income. He must pay the PFU on capital gains for an amount of 150 (i.e. 500 x 30%).
CAPITAL GAINS ON THE SALE OF TOTALENERGIES SHARES IN YEAR N
Must be reported in year n+1 in your tax return relating to year n income
However, you can choose to be taxed under the progressive scale income tax regime. In some cases, your net capital gains on shares held for more than two years can benefit from a tax allowance based
on their holding period.
Whatever the option chosen, capital gains on the sale of shares must be reported in your annual income tax return and are subject to social contributions
at an overall rate of 17.2%. Your capital losses on sale of shares can be offset against capital gains of the same nature realized
during the relevant year and the 10 subsequent years.
12.8% income tax
Based on this tax return and on the income of year n, in year n+1 you will be paying a flat income tax
( PFU ) at a global rate of 30% of the capital gains realized in year n.30%
(1) These measures apply to transfer of shares for valuable consideration. (2) Shareholders who are tax residents in France must be aware that the information provided is a summary of the rules applicable to them according to current tax law, and that their specific situation will need to be examined with their tax advisor.
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Date : 26/05/2021
Shareholder s Guide I Issue 2022