FACTSHEET 9
CAPITAL gains
How to calculate them?
The gain on the sale of shares is called a capital gain. It is the difference between their sale amount and their purchase amount.
SHARE SALE AMOUNT
(Unit sale price × number of shares)
-
Sale transaction fees and taxes
This information is included in your sale transaction statement.
-
SHARE ACQUISITION AMOUNT
(Unit purchase price × number of shares)(a)
+
Purchase transaction fees and taxes
This information is included:
- for purchases, on your purchase transaction statement;
- for gifts, on your 2735 gift form(b) or notarial deed;
- for an inheritance, on the 2705(b) and 2706(b) declarations.
=
CAPITAL GAIN OR LOSS NET OF BROKER FEES
The capital gains tax on sales is presented in the “Tax return” Factsheet.
Good to know (For French tax residents according to the applicable regulations)
TWO SCENARIOS THAT PROVIDE EXEMPTION FROM CAPITAL GAINS TAX IN FRANCE
Having a share savings plan, and keeping your shares for a period of five years from the account opening date. The capital gains realized after this period are only subject to social security contributions. Important: shares from another account cannot be transferred to a share savings plan. Only transfers from the share savings plan’s cash account can be used to invest in shares. The cash investment limit is €150,000 per plan.
Making a gift is still fully exempt from rights, taxes and social contributions up to maximum amounts set by French law.
Unrealized capital gains on shares are then tax exempt, as long as the transaction is reported to the tax authorities (see “Tax Return” Factsheet).
Plan to make your end-of-year gifts from September 2022.
- Unit purchase price adjusted, where required, for the attribution of free shares during the share holding period.
- Forms are available from the tax authorities or on the impots.gouv.fr website.