Understanding tax return

Taxation

Every year, you must declare your income to the tax authorities. This includes revenue from investment income, as well as any capital gains or capital losses on the disposal of your shares. We are here to help you fill out your tax return.

The elements of taxation in this page apply to French residents for tax purposes. More information for residents outside France in the section "Residents outside France"

Tax conditions for securities explained

The entirety of your income from financial investments is referred to as your “investment income.” As an Air Liquide Shareholder, this includes:

  • dividend payments,
  • any capital gains on the sale of your shares
  • the payment of fractional rights during free share attributions.

To fill out your 2022 tax return, refer to your 2021 tax reporting form as it contains all of your investment income information. Simply copy the stated amounts of dividends and fractional rights in the relevant boxes of your tax return. Any fractional rights received must be declared as a capital gain on sale, without applying the deduction (in box 3VG). Your tax reporting form also contains your gross disposal amount. The resulting capital gains must be declared.

If you are a direct registered Shareholder, access your Shareholder Portal to find your document.

Choosing the best taxation method


Every year you can choose between the 30% flat tax or the progressive scale. The option chosen will apply to the entire household’s investment income. We recommend using the tax authorities’ simulator on the impots.gouv.fr website (for french residents only). Please contact your local tax authorities if you have any questions.

You must:

  • leave unchecked box 2OP on your tax return;
  • verify the amount of your dividend which is pre-completed by the tax authorities in box 2BH and any advance withholding for tax deducted when the dividend was paid in box 2CK;
  • in the event of a capital gain on a sale, you must enter the amount of your capital gain in box 3VG without taking into account the deduction

Note: any fractional rights received from a free share attribution must be declared in box 3VG as a capital gain on a sale, without applying the deduction.

 

You must:

  • check box 2OP on your tax return;
  • verify the amount of your dividend which is pre-completed by the tax authorities in box 2BH and any advance withholding for tax deducted when the dividend was paid in box 2CK
  • in the event of capital gains on a sale, you must complete the amount of your capital gains in box 3VG without taking into account the deduction and enter any deductions for seniority in box 3SG (Common law seniority deduction) of form 2042C.

Note: any fractional rights received from a free share attribution must also be declared as a capital gain on a sale, without applying the deduction in box 3VG.

 

 

How are capital gains on sales taxed?

Calculation method

Share sale amount minus share acquisition amount equals capital gain or loss net of brokers fees

(a) Acquisition price per unit adjusted for any free share grants during the holding period.
(b) Forms available from the tax authorities or on the website impots.gouv.fr. 

Taxing capital gains on sales

Flat tax equals 30 percent or I opt for income tax on a progressive scale

(a) The deduction is 50% for a holding period of between 2 and less than 8 years, 65% for a holding period of at least 8 years. 

Please note that taxes on capital gains and capital losses on sales of marketable securities made in 2021 will be due to tax authorities in September 2022.

Deducting capital losses

Capital losses are deducted from capital gains before the seniority deduction. The seniority deduction is then applied to the resulting balance, thereby providing the taxable amount. This deduction is related to the seniority of the securities sold that resulted in a capital gain when using the progressive income tax rate and only for securities obtained prior to January 1, 2018.

You are responsible for calculating and declaring in Form 2042C the seniority deduction applied to your capital gains (box 3SG) and the amount prior to deduction of taxable capital gains (box 3VG) or losses (box 3VH). Form 2074 can help you itemize your calculations. Capital losses should first be deducted from capital gains of the same year, but it is possible to carry them forward for up to 10 years. 

Taxing dividends

Tax payments on dividends received occur in two stages:

In 2022, when dividends are paid:

  • a 30% withholding, composed of social contributions (17.2%) and an advance withholding (12.8%), is applied if you did not meet the requirements for exemption from the tax advance withholding;
  • if you did meet the requirements and submitted an advance withholding exemption request before November 30, 2021 to your account manager, only the social contributions (17.2%) are withheld.

Then, when you pay taxes on your 2021 income from marketable securities, you pay any remaining balance according to your chosen taxation method.

Dividend taxation: flat tax 30 percent or I opt for income tax, on a progressive scale

Residents outside France

Taxation of dividends in France for those residing outside France for tax purposes

A new statutory rate equal to at least 12.8% is withheld upon dividend payment by your account manager (Shareholder Services Department for direct registered Air Liquide shares, your financial institution for intermediary registered or bearer Air Liquide shares). However, in most cases, a tax agreement2 is signed between France and your country of residence. The main aim of this agreement is to set a flat tax rate which is withheld from your dividends.

To benefit from this rate, you must send form 50003 (corresponding to the request to apply the rate adopted in the agreement), completed and signed by the tax authorities of your place of residence, to your account manager by mid-April. This form must be resent to your account manager each year. Otherwise, the statutory rate of 12.8% will be applied upon payment of the dividend.

2 Tax agreement: a treaty between two countries aimed at avoiding the double-taxation of non-residents.
3 Cerfa form n°12816*01-02