CAPITAL GAINS TAXATION FOR SHARES

NOT HELD IN A PEA ( CONTINUED )

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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 annual election must be made when filing your income tax return .

It will apply to all your income falling within the scope of the flat tax ( PFU )

( i . e . , in particular , dividends and capital gains on share disposals ) . For personal

income tax due for the year 2026 ( i . e . , on 2026 income ) and subsequent years ,

this election is no longer irrevocable , meaning that you may subsequently

withdraw it if it proves not to be advantageous for you .

• 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 12 8 flat 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

• Under this option , capital gains

subject to income tax can benefit

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 :

T H E C O M P A N Y E D I T O R I A L 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