TAXATION ON CAPITAL GAINS FOR SHARES

NOT HELD IN PEA (CONTINUED)

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E D I T O R I A L T H E C O M P A N Y T H E T O T A L E N E R G I E S S H A R ET H E T A X A T I O N S H A R E H O L D E R R E L A T I O N S

IF IT IS MORE ADVANTAGEOUS FOR YOU,

YOU CAN CHOOSE TO HAVE YOUR CAPITAL

GAINS TAXED UNDER THE ORDINARY INCOME

TAX REGIME (PROGRESSIVE SCALE)

• This choice can be made when you f ill out your tax return. This option applies

to a single year.

• The option is irreversible and applies to all the income that falls within

the scope of the PFU (i.e. including dividends and capital gains on the sale

of shares).

• Under this option, capital gains subject to income tax can benef it from a tax

allowance based on the holding period of the shares, provided that the shares

sold were acquired before January 1, 2018. The tax allowance rate is

as follows:

• The holding period is counted from the date on which the shares were acquired.

HOLDING PERIOD ALLOWANCE

Less than 2 years 0%

Between 2 and 8 years 50%

More than 8 years 65%

N.B. The allowance does not apply to shares bought as from January 1, 2018.

I M P O R T A N T N O T E

Taxpayers who elected in

the past for the deferral of

taxation of capital gains

on the sale of shares are

taxed at the 128 f lat rate

at the end of the deferral

period except when they

opt to be taxed under the

ordinary income tax regime

progressive scale In this

case tax applies on capital

gains with no adjustment

for monetary erosion