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Income tax: capital gains on securities

Verified 08 avril 2021 - Legal and Administrative Information Directorate (Prime Minister)

If you are a tax resident in France and you realise a gain by selling a security (a share or a bond for example), you will have to pay tax on this capital gain. This tax will be paid the year following the sale.

If you made a gain by selling a title (e.g. share or bond) that you own, you will be taxable on the gain realised.

Certain capital gains are exempt, conditions, in particular those of share savings plan and those relating to wage savings (PEE, Perco for example).

The taxable capital gain is the gain you realise by selling a security. This is the difference between the purchase price and the sale price of the title.

In the case of a loss, the loss may be deducted from the same kind of gain, subject to certain conditions.

Example :

In 2020, you sold "A" securities that allowed you to earn €3,000, and "B" titles that caused you to lose €4 000.

You therefore incur a capital loss €1 000 (€3,000 - €4 000). This loss can be deducted from your 2020 earnings, or the following year if you have no gain.

In general, the financial institution that manages your securities calculates your capital gains and capital losses. He gives you a summary of your situation to complete your tax return.

The surplus value realised shall be subject to the single flat-rate levy at the rate 30% (12,8% and 17,20% of social).

However, you can choose the progressive scale.

The taxable capital gain must then be added to your other income on your tax return. The overall amount is then submitted to progressive scale of income tax.

You will also have to pay 17,20% of social.

You must report your earnings with the income in the year you sold the security.

Generally, the financial institution that holds your securities will provide you with a summary of your situation to complete your tax return.

You can refer to the supporting documents submitted by the financial institutions (Form 2561 TER):

Summary return on securities transactions and income from movable assets

Cerfa n° 11428 - Ministry of Finance
Other number : 2561

Online Declaration

Internet reporting is mandatory if your main residence is equipped with internet access and you are able to make your declaration online.

2021 Online 2020 Income Statement

Ministry of Finance

Before validating your pre-completed return online, you must verify the information provided and, if necessary, correct and complete it. Keep supporting documents for 3 years if requested by the administration.

Paper Declaration

In 2021, you can report your income on paper if you are in one of the following situations:

  • Your main residence is not equipped with internet access
  • It is equipped with internet access, but you are not able to make your declaration online

You will use the pre-completed paper return received between April and June 2021. Depending on your situation, this is the return No 2042 or 2042 C. Declaration #2042 RICI groups major tax credits and reductions.

If you do not receive a print (1st declarationchange of address, change in family situation), you can report online or download the necessary declarations from early May on service-public.fr or www.impots.gouv.fr.

Certain income is to be reported on a separate return. You can also download them online. The main annexed declarations are:

Before signing your return, you must verify the information provided and, if necessary, correct and complete it.

You do not have to attach supporting documents to your paper return unless they are documents prepared by you (such as a detailed list of your actual expenses). However, keep the documents for 3 years if requested by the administration.