The elements of taxation in this document apply to French residents for tax purposes. More information for residents outside France here.
Investment income refers to all income from financial investments. As an Air Liquide shareholder, this corresponds to your dividend payments, any capital gains on sales of your shares and the payment of fractional rights during free share attributions.
Your tax reporting form includes all the information necessary to complete your tax return. Simply copy the stated amounts of dividends and fractional rights in the relevant boxes of your tax return. Any fractional rights received following the October 2019 free share attribution are to be reported as a capital gain on a sale without taking into account the deduction (in box 3VG).
Good to know: if you are a direct registered shareholder, you can access your account document in your personal online Account.
Note: you must calculate the total amount of your net capital gains or losses based on the gross disposal amounts yourself. For further information on how to do this, please refer to our factsheet.
Since the enactment of the 2018 Finance Act in France, each year you may choose between the 30% flat tax and the income tax, on a progressive scale, which corresponds to the historic mechanism.
To help you choose between the taxation methods available to you and make an informed choice, we recommend using the tax authorities' simulator (in French only).
Note: the option chosen applies to the entire household’s investment income.
The tax return form, as well as the tax authorities’ simulator, applies the flat tax by default. You therefore do not need to change anything if you choose the flat tax.
You must, however:
Note: any fractional rights received from a free share attribution must be declared as a capital gain on disposal, without applying the deduction (in box 3VG).
You must tick box 2OP on your tax return.
You must also:
Note: any fractional rights received from a free share attribution must also be declared as a capital gain on disposal, without applying the deduction (in box 3VG).
Find out more:
Read the Taxation factsheet
The elements of taxation apply to French residents for tax purposes.
Paul, single, with no children, received in 2019:
He also made €1,500 in capital gains on disposals (before the seniority deduction).
In other words, total revenue of €37,000, of which €35,000 in recurring revenue and €2,000 in non-recurring revenue. His marginal tax rate is therefore 30%.
|If Paul chooses:||the flat tax||the progressive scale|
|Paul will pay:||30% of his investment income (income tax of 12.80% and social contributions of 17.20%).||30% of his non-recurring revenue (due to his marginal tax rate), taking into account the 40% deduction on dividends1, and social contributions of 17.20%|
|In this specific case:||30% x (€1,500 + €500) = €600||
|A total of €600 included in his income tax.||A total of €884 included in his income tax.|
Paul’s best option would be to apply the flat tax.
1 60% of the amount of the gross dividend is taxed, due to the application of the 40% deduction.
[updated on April 27, 2020]
Article published on April 06, 2020