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Income Tax - Savings and Investment Income
Verified 07 avril 2022 - Legal and Administrative Information Directorate (Prime Minister)
The taxation of investment income varies depending on whether it is fixed (bonds, debt securities, etc.) or variable (shares and business shares). Special plans are provided for certain investments (share savings plan, life insurance, company savings plan). Regulated savings plans and accounts are exempt from income tax (e.g. A Booklet, Sustainable Development Booklet).
What applies to you ?
Depending on your personal situation, the steps to take may vary.
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2021 income
Taxable income
Income from the following investments is taxable:
- Government bonds and loans
- Bonds issued by public legal entities (department, municipality, etc.)
- Deposit and Term Accounts
- Tax Bank Books
- Treasury bills and cash bills
- Marketable debt securities (cash note, certificate of deposit, etc.)
- Mutual Fund Shares
Imposition
Répondez aux questions successives et les réponses s’afficheront automatiquement
Single Flat Pick Option
Revenues are subject to a single flat-rate levy (UFP) of 30% (also called « flat tax »).
This levy is made up of income tax (12,8%) and social (17,20%).
Bar option
You can choose progressive scale of income tax, depending on marginal tax bracket.
You will also need to adjust social (17,20%).
Declaration
To tax return, you can view the following documents:
- Explanatory note (in particular that relating to income from securities and movable capital)
- Practical Brochure of Income Tax
- Supporting documents submitted by paying institutions (IFU form)
If a pre-filled amount is incorrect, you must correct or complete it.
Taxable income
Income from shares and business shares subject to business tax are taxable.
These revenues are called, as the case may be, dividend or distributed income.
Imposition
The dividend are subject to tax. To determine the value, you can choose between a single lump sum payment (flat tax) and the progressive scale.
Répondez aux questions successives et les réponses s’afficheront automatiquement
Single Flat Pick Option
Revenues are subject to a single flat-rate levy of 30% (also called « flat tax »).
This levy is made up of income tax (12,8%) and social (17,20%).
Bar option
You can choose progressive scale of income tax, depending on marginal tax bracket.
You can then benefit from abasement of 40%.
You must also pay social (17,20%).
Declaration
To tax return, you can view the following documents:
- Explanatory note (in particular that relating to income from securities and movable capital)
- Practical Brochure of Income Tax
- Supporting documents submitted by paying institutions (IFU form)
If a pre-filled amount is incorrect, you must correct or complete it.
PEL open before 2018
ELP 12 years or younger
Interest on a LIP under 12 years of age is exempt.
PEL opened for more than 12 years
Single Flat Pick Option
Revenues are subject to a single flat-rate levy (UFP) of 30% (also called « flat tax »).
This levy is made up of income tax (12,8%) and social (17,20%).
Bar option
You can choose progressive scale of income tax, depending on marginal tax bracket.
You will also need to adjust social (17,20%).
ELP opened in or after 2018
Single Flat Pick Option
Revenues are subject to a single flat-rate levy (UFP) of 30% (also called « flat tax »).
This levy is made up of income tax (12,8%) and social (17,20%).
Bar option
You can choose progressive scale of income tax, depending on marginal tax bracket.
You will also need to adjust social (17,20%).
CEL open before 2018
Interests of a CEL opened before 1to January 2018 are exempt.
CEL since 2018
Single Flat Pick Option
Revenues are subject to a single flat-rate levy (UFP) of 30% (also called « flat tax »).
This levy is made up of income tax (12,8%) and social (17,20%).
Bar option
You can choose progressive scale of income tax, depending on marginal tax bracket.
You will also need to adjust social (17,20%).
Taxation of income (dividend and capital gains) of the AAP depends on the date of your withdrawals.
Répondez aux questions successives et les réponses s’afficheront automatiquement
Withdrawal or redemption after 5 years
EAP income
If you do not withdraw or redeem within 5 years of your 1to payment, you are exempt from income tax.
However, the exemption of income from unlisted securities held in an AAP is limited each year to 10% the amount of such securities.
FYI : the revenues of the 17,20% of social levies (CSG, CRDS).
To tax return, you can view the following documents:
- Explanatory note (in particular that relating to income from securities and movable capital)
- Practical Brochure of Income Tax
- Supporting documents submitted by paying institutions (IFU form)
If a pre-filled amount is incorrect, you must correct or complete it.
Annuity
The life annuity after the expiration ofe The year of the AAP is exempt from income tax.
FYI : life annuity is subject to 17,20% of social levies (CSG, CRDS).
To tax return, you can view the following documents:
- Explanatory note (in particular that relating to income from securities and movable capital)
- Practical Brochure of Income Tax
- Supporting documents submitted by paying institutions (IFU form)
If a pre-filled amount is incorrect, you must correct or complete it.
Withdrawal or redemption before 5 years
If you have withdrawn or redeemed before the 5 years of your AAP, the net gain realised since the plan was opened is taxed.
The net gain is the difference between:
- Liquidity value of the AAP on the date of withdrawal
- Payments made on the plan since its opening
You can choose one of the following 2 tax modes:
- Single Flat Charge (UFP) 30% (also called « flat tax »)
- Progressive scale
Revenues are subject to a single flat-rate levy (UFP) of 30% (also called « flat tax »). This levy is made up of income tax (12,8%) and social (17,20%).
You can choose to progressive scale of income tax, depending on marginal tax bracket. You will have to pay social (17,20%).
In certain situations, early withdrawals are exempt, particularly in the following cases:
- Death of Plan Holder
- Allocation of funds to finance the creation or resumption of a company, subject to
Please note : social levies (CSG, CRDS) at the rate 17,20% remain due.
To tax return, you can view the following documents:
- Explanatory note (in particular that relating to income from securities and movable capital)
- Practical Brochure of Income Tax
- Supporting documents submitted by paying institutions (IFU form)
If a pre-filled amount is incorrect, you must correct or complete it.
The amounts paid by your employer under a salary savings plan are exempt from income tax.
FYI : income from movable property shall be subject to 17,20% of social levies (CSG, CRDS), with exceptions.
The taxation of life insurance contracts is dependent on the age of the contract at the time of withdrawal and the date of payment of premiums.
FYI : income from movable property shall be subject to 17,20% of social levies (CSG, CRDS), with exceptions.
Income from the following investments is exempt from income tax:
- Booklet A
- Booklet
- Popular Savings Book (LEP)
- Sustainable Development Booklet (LDD)
FYI : these revenues are generally exempt from social.
Taxation on exit of the retirement savings contract depends on the type of retirement savings contract subscribed:
- Individual Retirement Savings Plan
- Company Retirement Savings Plan (Pere)
- Group company Retirement Savings Plan (Pereco)
- Compulsory company retirement savings plan (Pero)
- Popular Retirement Savings Plan (Perp)
- Group retirement savings plan (Perco)
- Optional schemes Prefon, Corem and CGOS
Taxation also depends on:
- Payment in annuity or capital
- Exit at retirement or early exit
- Tax deduction of contributions paid or no tax deduction of these contributions
2022 income
Warning : these revenues are not to be reported on your 2022 return on your 2021 income. They must be reported on your 2023 return.
Taxable income
Income from the following investments is taxable:
- Government bonds and loans
- Bonds issued by public legal entities (department, municipality, etc.)
- Deposit and Term Accounts
- Tax Bank Books
- Treasury bills and cash bills
- Marketable debt securities (cash note, certificate of deposit, etc.)
- Mutual Fund Shares
Imposition
Répondez aux questions successives et les réponses s’afficheront automatiquement
Single Flat Pick Option
Revenues are subject to a single flat-rate levy (UFP) of 30% (also called « flat tax »).
This levy is made up of income tax (12,8%) and social (17,20%).
Bar option
You can choose progressive scale of income tax, depending on marginal tax bracket.
You will also need to adjust social (17,20%).
You can request to be exempted from the non-discharge lump sum payment if your reference tax income of the penultimate year is less than €25,000 (€50 000 for a couple). For revenues collected in 2022, this is the 2020 tax reference income.
The application must be sent to the financial institution that pays you the income no later than November 30 of the year preceding the year of payment (November 30, 2022 for an exemption in 2023).
In general, the establishment sends you a certificate of honour form to return it completed if you meet the conditions.
Taxable income
Income from shares and business shares subject to business tax are taxable.
These revenues are called, as the case may be, dividend or distributed income.
Imposition
The dividend are subject to tax. You can choose between flat tax and the progressive scale.
Répondez aux questions successives et les réponses s’afficheront automatiquement
Single Flat Pick Option
Revenues are subject to a single flat-rate levy (UFP) of 30% (also called « flat tax »).
This levy is made up of income tax (12,8%) and social (17,20%).
Bar option
You can choose progressive scale of income tax, depending on marginal tax bracket.
You will also need to adjust social (17,20%).
You can request to be exempted from the non-discharge lump sum payment if your reference tax income of the penultimate year is less than €50 000 (€75,000 for a couple). For revenues collected in 2022, this is the 2020 tax reference income.
The application must be sent to the financial institution that pays you the income no later than November 30 of the year preceding the year of payment (November 30, 2022 for an exemption in 2023).
In general, the establishment sends you a certificate of honour form to return it completed if you meet the conditions.
PEL open before 2018
ELP 12 years or younger
Interest on a LIP under 12 years of age is exempt.
PEL opened for more than 12 years
Single Flat Pick Option
Revenues are subject to a single flat-rate levy (UFP) of 30% (also called « flat tax »).
This levy is made up of income tax (12,8%) and social (17,20%).
Bar option
You can choose progressive scale of income tax, depending on marginal tax bracket.
You will also need to adjust social (17,20%).
2018
Single Flat Pick Option
Revenues are subject to a single flat-rate levy (UFP) of 30% (also called « flat tax »).
This levy is made up of income tax (12,8%) and social (17,20%).
Bar option
You can choose progressive scale of income tax, depending on marginal tax bracket.
You will also need to adjust social (17,20%).
CEL open before 2018
Interests of a CEL opened before 1to January 2018 are exempt.
CEL since 2018
Single Flat Pick Option
Revenues are subject to a single flat-rate levy (UFP) of 30% (also called « flat tax »).
This levy is made up of income tax (12,8%) and social (17,20%).
Bar option
You can choose progressive scale of income tax, depending on marginal tax bracket.
You will also need to adjust social (17,20%).
Taxation of income (dividend and capital gains) of the AAP depends on the date of your withdrawals.
Répondez aux questions successives et les réponses s’afficheront automatiquement
Withdrawal or redemption after 5 years
EAP income
If you do not withdraw or redeem within 5 years of your 1to payment, you are exempt from income tax.
However, the exemption of income from unlisted securities held in an AAP is limited each year to 10% the amount of such securities.
FYI : the revenues of the 17,20% of social levies (CSG, CRDS).
To tax return, you can view the following documents:
- Explanatory note (in particular that relating to income from securities and movable capital)
- Practical Brochure of Income Tax
- Supporting documents submitted by paying institutions (IFU form)
If a pre-filled amount is incorrect, you must correct or complete it.
Life annuity
The life annuity after the expiration ofe The year of the AAP is exempt from income tax.
FYI : life annuity is subject to 17,20% of social levies (CSG, CRDS).
To tax return, you can view the following documents:
- Explanatory note (in particular that relating to income from securities and movable capital)
- Practical Brochure of Income Tax
- Supporting documents submitted by paying institutions (IFU form)
If a pre-filled amount is incorrect, you must correct or complete it.
Withdrawal or redemption before 5 years
If you have withdrawn or redeemed before the 5 years of your AAP, the net gain realised since the plan was opened is taxed.
The net gain is the difference between:
- Liquidity value of the AAP on the date of withdrawal
- Payments made on the plan since its opening
You can choose one of the following 2 tax modes:
- Single Flat Charge (UFP) 30% (also called « flat tax »)
- Progressive scale
Revenues are subject to a single flat-rate levy (UFP) of 30% (also called « flat tax »).
This levy is made up of income tax (12,8%) and social (17,20%).
You can choose to progressive scale of income tax, depending on marginal tax bracket. You will have to pay social (17,20%).
In certain situations, early withdrawals are exempt, particularly in the following cases:
- Death of Plan Holder
- Allocation of funds to finance the creation or resumption of a company, subject to
Please note : social levies (CSG, CRDS) at the rate 17,20% remain due.
To tax return, you can view the following documents:
- Explanatory note (in particular that relating to income from securities and movable capital)
- Practical Brochure of Income Tax
- Supporting documents submitted by paying institutions (IFU form)
If a pre-filled amount is incorrect, you must correct or complete it.
The amounts paid by your employer under a salary savings plan are exempt from income tax.
FYI : income from movable property shall be subject to 17,20% of social levies (CSG, CRDS) with exceptions.
Taxation of life insurance contracts depends on the age of the contract at the time of withdrawal and the date of payment of premiums.
FYI : income from movable property shall be subject to 17,20% of social levies (CSG, CRDS) with exceptions.
Income from the following investments is exempt from income tax:
- Booklet A
- Booklet
- Popular Savings Book (LEP)
- Sustainable Development Booklet (LDD)
FYI : these revenues are generally exempt from social.
Taxation on exit of the retirement savings contract depends on the type of retirement savings contract subscribed:
- Individual Retirement Savings Plan
- Company Retirement Savings Plan (Pere)
- Group company Retirement Savings Plan (Pereco)
- Compulsory company retirement savings plan (Pero)
- Popular Retirement Savings Plan (Perp)
- Group retirement savings plan (Perco)
- Optional schemes Prefon, Corem and CGOS
Taxation also depends on:
- Payment in annuity or capital
- Exit at retirement or early exit
- Tax deduction of contributions paid or no tax deduction of these contributions