Shares and tax  [ Return towards  More about  ]

1.Capital gains tax          2.Tax on dividends

 

Capital gains tax :

The net capital gain is the difference between the sale price of a share (excluding transaction fees and tax) and the purchase price (including purchase fees).

 2009 information :

If shares are sold against payment, and if the annual sales amount per taxable household exceeds the € 25 729 threshold, including rokerage fees, capital gains are subject to the following taxes from the first euro :

· capital gains tax of 18 %,
· social deductions of 12,1 %.

if  the annual value exceeds the above threshold, any capital losses can be charged against capital gains of the same type when sustained during the same year or during the next ten years.

When you exceed the annual threshold because of an exceptional event, it is possible to consider the average of your share transfers of the last three years. Exceptional events include layoffs, retirement, divorce, and any exceptional event considered as such by the administration justifiying total or partial liquidation of your portfolio.

---------------------------------------------------------------------------------------------------     

 Tax on dividends

 

Dividends paid to French taxpayers are included in their taxable income calculation and are the subject to social deductions of 12.1%

You can choose between two solutions :

1. You choose the sliding income tax scale :  
     - you can benefit from Allowances and tax credit,
     - 2010 Tax income is applied,
     - 12,1 % of social deductions withheld in 2009.

2. You chose the withholding system

     - No Allowance or tax credit,
     - withholding tax of 18% deducted at source for all dividend payments,
     - 12,1 % of social deductions withheld in 2009.

 

Studies indicate that the second choice present an interest only for taxpayers owning a 1.5 €million portfolio and collecting € 40 000 minimum of dividends.

 

 [haut de page]

 -----------------------------------------------------------------------------------