Share savings plan Income tax - How is a person's income taxed?
Verified 08 June 2023 - Legal and Administrative Information Directorate (Prime Minister)
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 income) are exempt from income tax.
However, these gains are taxable in the following 2 cases:
- Withdrawal on the PEA before 5 years
- Income of unquoted securities held in the EAP
The taxation of an AEP's income depends on the date of withdrawals.
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No withdrawal or redemption
For the duration of the AAP, gains from investments made under the plan are not taxable, provided they are reinvested in the AAP.
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 17.20% social security contributions).
Withdrawal or redemption after 5 years
If you withdraw money from your AAP after 5 years, your AAP earnings are exempt from 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% (and to 17.20% social security contributions).
You can withdraw all or part of your PEA, without it being closed.
Withdrawal can also take the form of a life annuity.
FYI
earnings from the EAP are subject to 17.20% of social security contributions (CSG, CRDS).
To perform your tax return, you can view the following documents:
- Explanatory notes (in particular the notice on income from securities and transferable capital)
- Practical Income Tax Brochure
- Supporting documents submitted by paying institutions (IFU form)
If a pre-filled amount is inaccurate, you must correct or complete it.
Withdrawal or redemption before 5 years
If you withdraw money from your PEA (withdrawal or redemption) before the 5-year period of the savings plan, the net gain realized since the plan was opened shall be taxed at the rate of 12.8%.
However, if you wish, you can opt for a progressive scale taxation.
Net gain is the difference between the following 2 amounts:
- Net asset value the PEA at the date of withdrawal
- Amount of payments made to the plan since it was opened
However, early withdrawals are exempt from income tax in certain situations, such as:
- Death of plan holder
- Allocation of funds to finance the creation or takeover of a company, subject to conditions
FYI
earnings from the EAP are subject to 17.20% 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:
- Dismissal
- Disability ( 2nd or 3rd category)
- Retirement
The 2022 withdrawals are reported in 2023 (2024 for 2023 withdrawals).
To complete your tax return, you can consult the explanatory note and the practical income tax brochure.
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- General Tax Code: Articles 150-0 A to 150-0 FTaxation in case of withdrawal before 5 years except exception (Article 150-0 A) - Calculation of the capital gain (Article 150-0 D)
- General Tax Code: Articles 156 to 163xExemption of investment income and capital gains (Article 157)
- General Tax Code: Article 200aTax rate
- SHARE SAVINGS PLAN BOFIP-Taxes n°BOI-RPPM-RCM-40-50 relating to the
- Taxes: access your Special Space
Online service
- 2023 Simulator: 2022 Income Tax
Simulator
- Income Tax Return (Paper)
Form
- 2023 Supplementary Income Statement 2022
Form
- Summary declaration of transactions in transferable securities and income from movable capital
Form
- 2023 Online Income Tax Return 2022
Online service
FAQ
- Income tax: return and reportable incomeService-Public.fr
- Income tax: deductions, reductions and tax creditsService-Public.fr
- Share savings plan in:Service-Public.fr
- Income Tax - Annual Income Tax ReturnService-Public.fr
- Income Tax - Savings and Investment IncomeService-Public.fr
- Income tax - capital gains on securitiesService-Public.fr
- Social levies (CSG, CRDS...) on wealth incomeService-Public.fr
- Income Tax - Reporting Life AnnuitiesService-Public.fr
- Tax SiteMinistry of Finance
- 2023 Practice Brochure - 2022 Income Tax ReturnMinistry of Finance
- Income tax: information leafletsMinistry of Finance