How are taxed dividends and capital gains on shares ? Is it better to a PEA or a securities account ordinary ?
What is the taxation applicable to income and to capital gains from shares ? The dividends distributed by the companies to provide yield enviable compared to those of other investments, and to benefit from it individuals can buy shares in two different frameworks : on a securities account ordinary (CTO) or in a share savings plan (PEA), to simplify. We could add all the envelopes, tax to purchase investment funds : life insurance mpt, Perp, retraite Madelin or company savings plan (PEE). But these envelopes do not allow you to buy shares directly in the same conditions of access to the financial markets as a securities account or a PEA.
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A securities account is simply an account where are recorded all the financial investments which are not deposits or booklets, whether they be investment funds or shares of companies, listed or unlisted, and even other securities such as corporate bonds or government bonds. The share savings plan is an envelope tax containing an account-securities subject to specific constraints, where we cannot, in principle, to buy shares of French and european companies, excluding investment companies SIIC (listed real estate), since 21 October 2011. The PEA also contains an account of “species”, related to the securities account, to manage the liquidity of the PEA, such as payments pending investment or dividends received in the PEA.
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These two types of account are the most economical charges on equity investments, provided you go through a broker, or an online bank offering rates without custody rights annual, as Boursedirect.fr, Fortuneo.fr, Binck.fr or Boursorama.com.
The withholding changes the situation
in a securities account ordinary, the gains are subject to levy one-time lump sum (PFU) of 30% since 2018, whether of dividends or capital gains. So for 100 € dividends cashed, you pay € 30 for PFU, it remains 70 € net. The taxation regime earlier could be more interesting in certain situations. Before the tax reform launched by the president of Macron in the fall of 2017, dividends received on a CTO were subject to income tax after an abatement of 40%, and social contributions on the total of all dividends, but a portion of which was deductible from taxable income.
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From 2018, investors have the choice between the old regime of taxation of income and capital gains to the IR, or the PFU to 30%. By default, the latter applies. “We can ask them to opt for the regime of income tax on its dividends, but this option applies on all of its financial income, including interest booklets and the benefits of life insurance contracts,” explains Renaud Bellivier de Prin, head of the department for stock Exchange and Patrimonial chez Fortuneo. “The taxpayers who will have interest may opt for taxation at the scale of the IR. This option is to be exercised for the first time in may 2019, at the time of the declaration of their incomes by 2018,” says Karine Lecoq, senior engineer-heritage at Lazard Frères Gestion.
No tax until withdrawal
The tax is lighter in the context of the PEA, provided you wait at least her fifth birthday to make a withdrawal. Established in 1992 to encourage long-term investment in the companies, the PEA was originally exempt from any tax after five years. But since the creation of the generalized social contribution (CSG), in 1996, the gains made within the PEA are now subject to social contributions when withdrawn. With a subtle additional : in case of withdrawal between five and eight years, the PEA is closed, that is to say that it turns into a securities account ordinary gains subsequent to the first removal no longer benefiting from the taxation of the PEA. Whilst waiting for eight years, you can make withdrawals of his PEA without causing its closure.
The fiscal reform of 2017 has created a new distinction between the old and the new PEA. Up here, in case of withdrawal after five years, the gains realized within a PEA were taxed at the rate of social security contributions in force during the realization of these gains, while for the PEA, open for 2018, the gains will be taxed at the same rates of social security contributions. The nuance is important. On the former PEA, the accumulated gains prior to February 1996 remain totally exempt, and the social contributions are 3.9% for gains realized in 1997, or 10% on those accumulated between 1998 and June 2004, for example. “The very big interest of the PEA is the capitalization of all income without friction tax,” adds Erwan Grumellon, director of the engineering heritage at Swiss Life Private Bank. The fact of not having any levy on capital gains and dividends as long as you don’t withdrawal allows you to fructify these investments more efficiently than on a securities account.
investors with a PEA open before 2018 have a vested interest in the store, even if the transfer to a broker online if the costs of their bank are too high, as 25% of the holders of PEA.
Box. A relaunch of the PEA expected
The law Covenant could renew the interest for the PEA. Indeed, the text adopted by the national Assembly, even if it is not definitive, plans to open a PEA to a younger audience, and to loosen its rules for the loyalty of its policyholders. Up here, within a household, single taxpayers taxable, so the parents can have a PEA.
The draft law Covenant relaxes rules for all PEA. If it is validated, a withdrawal after five years should not lead to the closing of the PEA, and in the case of a withdrawal after eight years, we could make payments later, as long as one has not reached the ceiling of payment, which is impossible today as soon as one has made a withdrawal. Today, the maximum payment is 150 000 € on the PEA, and 75 000 on the PEA-PME, a version that is still more restrictive dedicated to the actions of SMES in the most risky. “The amendment of Nadia Hai also provides that the holder may fill in a priority envelope of his choice, up to 225 000 €”, explain the experts of Boursorama. If this project is confirmed, the PEA could be the fiscal framework in the most flexible and the most advantageous to invest in equities and care for its future revenues.
The key figures of the PEA * 6.1 million PEA93 billion € épargne2,6 billion € paid by 20174 billion euros withdrawn in 201715 000 € savings per PEA150 000 €, ceiling versements5 years for the reduced taxation
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The shares saving plan (PEA), the future darling of investors
PEA, an attractive medium in which we do not think enough to Invest in Stock market : between securities accounts and PEA Of new safeguards for investors * Source : Bank of France