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Income Tax - How are share savings plan Income Tax (AEP)?

Verified 07 April 2022 - Legal and Administrative Information Directorate (Prime Minister)

Share savings plan (PEA) is a savings product intended for investment in the stock market.

No withdrawal or repurchase

During the PEA period, dividend and the capital gains from investments made under the plan are not taxable, provided that they are reinvested in the AAP.

However, income from unlisted securities held in an AAP shall be exempt, each year, up to 10% the amount of such investments.

Withdrawal or redemption after 5 years

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

However, income from unlisted securities held in an AAP shall be exempt, each year, up to 10% the amount of such investments.

You can withdraw your AAP in whole or in part without closing it.

Withdrawal can also be done as a life annuity.

FYI  

the revenues of the 17,20% of social levies (CSG, CRDS).

To tax return, you can view the following documents:

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

Withdrawal or redemption before 5 years

If you withdraw money from your AAP (withdrawal or redemption) before the 5 years of the savings plan, the net gain realised since the beginning of the plan shall be taxed at the 12,8%.

However, you can choose to progressive scale.

The net gain is the difference between the following 2 amounts:

  • Liquidity of the EAP on the date of withdrawal
  • Amount of payments made on the plan since it opened

However, early withdrawals are exempt in certain situations, in particular in the following cases:

  • Death of Plan Holder
  • Allocation of funds to finance the creation or resumption of a company, subject to

FYI  

the revenues of the 17,20% of social levies (CSG, CRDS).

The return of these revenues will be made with your income in 2022.

To complete your tax return, you can review the explanatory note and practical brochure on income tax .

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