Factsheet 10 : Taxation

Dividend taxation

(regardless of the acquisition date of shares)

Flat tax (by default): 30% 

30% on the gross amount of dividends (without taking into account the 40% deduction)

or

I opt for income tax, on a progressive scale

Social contributions: 17.2%

+

Income tax based on a progressive scale on the amount of gross dividends after the 40% deduction

How to complete your tax return

To help you choose between the tax methods available to you and make an informed choice, before you complete your tax return for 2018 income, we recommend using the tax authorities’ simulator on the impots.gouv.fr website.

NOTE: the tax return form, as well as the tax authorities’ simulator on the impots.gouv.fr, website, applies the 30% flat tax (PFU) to your investment income by default.

You must select an option:

Option 1
I opt for the 30% flat tax (by default)

  1. I leave box 2OP unticked.

  2. The amount of my dividend which is pre-completed by the tax authorities is shown in box 2BH (Revenus déjà soumis aux prélèvements sociaux avec CSG déductible si option barème) and any advance withholding tax payment deducted when the dividend was paid is shown in box 2CK (Crédit d’impôt égal au prélèvement forfaitaire non libératoire effectué en 2019).
  3. In the event of a capital gain on a sale, I must complete the amount of my capital gain in box 3VG (Plus-value sans application d’abattements) without taking into account the deduction for seniority.

or

Option 2
I opt for income tax, on a progressive scale

  1. I tick box 2OP.

  2. The amount of my dividend pre-filled by the tax authorities appears in box 2BH and any interim tax deducted at the time of payment of the dividend in box 2CK.
  3. In the event of a capital gain on a sale, I must complete the amount of my capital gain in box 3VG (Plus-value sans application d’abattements) without taking into account the deduction and I must enter any deductions for seniority in box 3SG (Abattement pour durée de détention de droit commun) from the document 2042C.

PLEASE NOTE: 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).

Please contact your local tax authorities if you have any questions.

PAYMENT OF TAX

THE PAYMENT OF TAX ON DIVIDENDS RECEIVED IN 2019 IS CARRIED OUT IN TWO STAGES:
  1. In 2019, when dividends are paid
    1. If you have sent a request to your account manager for exemption from the advance withholding before November 30, 2018 only the social contributions of 17.2% will be withheld;
    2. If you do not fulfill the requirements to benefit from this exemption, social contributions of 17.2% will be withheld along with an advance withholding of 12.8%, i.e. a total advance withholding of 30%.
  2. The balance will be applied in 2020 when you pay your 2019 income tax of your investment income, according to the taxation method chosen.