Share savings plan Income tax - How is a person's income taxed?

Verified 01 January 2025 - Directorate for Legal and Administrative Information (Prime Minister)

Income tax: 2025 income tax return for 2024

This page is up to date on 1er January 2025.

However, forms, online services and information materials are not yet available for the 2025 tax year of the 2024 tax return. They will be made available online as soon as they become available.

Moreover, the draft budget for 2025 could not be promulgated before 1er January 2025.

The law no. 2024-1188 of 20 december 2024 special allows the government to collect taxes, without changing the scales, until a 2025 budget law is passed.

If the 2025 budget changes the rules on this page, the content will be updated after the law is published in the Official Gazette.

Share savings plan The PEA is a savings product intended to be invested in the stock exchange.

The gains made under the EAP (dividends, capital gains and other products) are exempt income tax.

However, these gains are taxable in the 2 cases following:

  • Withdrawal on the PEA before 5 years
  • Income of unquoted securities held in the PEA.

The five-year period runs from the date the plan is opened.

It corresponds to the date of your 1er payment.

The taxation of an AEP's income depends on the date of withdrawals:

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No withdrawal or redemption

During the life of the AAP, the gains from investments made under the plan are not taxable, provided it is reinvested in the EAP.

However, the income of unquoted securities held in an EAP shall be exempt, each year, up to 10% the amount of such investments (i.e. the purchase value of such securities).

Income exceeding this limit is subject to a tax of 12.8% (and to 17.2% social security contributions).

Withdrawal or redemption before 5 years

If you withdraw money from your PEA (withdrawal or redemption) before the 5 years of the savings plan, the net gain realized since the opening of the plan is imposed at the rate of 12.8%.

However, if you wish, you can opt for a overall taxation at the graduated scale, if you choose this option when you file your tax return.

Net gain is difference between the 2 amounts following:

  • Net asset value the PEA at the date of withdrawal
  • The amount of payments made to the plan since it was opened.

However, the early withdrawal shall be provided with exemption income tax in certain situations, including:

  • Death of plan holder
  • Allocation of funds to finance the creation or takeover of a company, subject to conditions.

FYI  

AAP earnings are subject to 17.2% of social security contributions (CSG, CRDS).

If you withdraw from your PEA before 5 years, the PEA is closed.

However, the closure of the plan does not take place under certain conditions.

This is particularly the case if you or your spouse (married or former) are in one of the following situations:

The 2024 withdrawals are to be reported in 2025 (2026 for 2025 withdrawals).

To make your tax return, you can view the following documents:

If a pre-filled amount is inaccurate, you must correct or complete it.

Withdrawal or redemption after 5 years

If you withdraw money from your PEA after 5 years, your PEA earnings are exempt income tax.

However, the income of unquoted securities held in an EAP shall be exempt, each year, up to 10% the amount of such investments (i.e. the purchase value of such securities).

Income exceeding this limit is subject to a tax of 12.8%.

However, if you wish, you can opt for a progressive scale taxation, if you choose this option when you file your tax return.

FYI  

AAP earnings are subject to 17.2% of social security contributions (CSG, CRDS).

You can withdraw all or part of your PEA, without it being closed.

Withdrawal can also take the form of a life annuity.

Where the plan is terminated after five years by payment of a life annuity, the annuity shall be exempt income tax.

But life annuities are subject to social security contributions (CSG, CRDS) at the rate of 17.2%.

To make your tax return, you can view the following documents:

If a pre-filled amount is inaccurate, you must correct or complete it.

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