FR Capital Gains

PFU calculation

| Component | Amount | |---|---| | IR: 10,000 × 12.8% | 1,280 | | PS: 10,000 × 17.2% | 1,720 | | **Total** | **3,000** |

Barème calculation

| Component | Amount | |---|---| | Taxable base: 10,000 × (1 − 40%) | 6,000 | | IR: 6,000 × 30% | 1,800 | | PS: 10,000 × 17.2% | 1,720 | | CSG déductible N+1: 10,000 × 6.8% × 30% | −204 | | **Net total** | **3,316** |

Dividends PFU/barème rules

Default PFU 30% (2025); rising to 31.4% from dividends received in 2026. Option barème: 40% abattement + progressive IR + PS. Foreign dividends: may carry withholding tax from source country — credit under tax treaty

Interest / RCM rules

Bonds, crowdfunding interest, taxable savings accounts, term deposits. PFU or barème on option. No abattement (unlike dividends). Crowdfunding immobilier: taxed as RCM, not rental income. Livrets réglementés (Livret A, LDDS, LEP): fully exempt from IR and PS

Capital gains on securities rules

Net gain on sale of shares, partnership interests, UCITS. PFU or barème on option. Holding period abattements: only for shares acquired before 2018 AND barème option. Director retirement abattement: EUR 500,000 lump sum under strict conditions

PEA contribution ceilings

| Plan | Ceiling | |---|---| | PEA classique | EUR 150,000 | | PEA-PME | Combined PEA + PEA-PME ≤ EUR 225,000 | | PEA jeune (adult child attached to household) | EUR 20,000 |

Ceiling application

Ceilings apply to contributions, not plan value. A plan can exceed EUR 150,000 through gains.

Tax treatment by plan age (PEA)

| Plan age | Withdrawal effect | IR | PS | |---|---|---|---| | < 5 years | **Closure** of plan | PFU 12.8% (or barème) | 17.2% | | ≥ 5 years | Free withdrawals, no closure | **Exempt** | 17.2% (→ 18.6% from 01/01/2026) |

PEA exemption after 5 years

After 5 years: total IR exemption on gains. Only PS are due at each withdrawal. PS from 01/01/2026: 18.6% on total gain at withdrawal (including gain accrued before 2026). PEA gains are "produits de placement" (L. 136-7 CSS).L. 136-7 CSS

Eligible/non-eligible PEA assets

Eligible assets: European equities (EU + EEA), UCITS with ≥75% European equities, eligible European ETFs. Non-eligible: US/Asian stocks, bonds, gold, crypto.

Taxable gain portion on partial withdrawal

taxable_gain_portion = (total_gains / total_contract_value) × withdrawal_amount

Proportionality rule

A partial withdrawal does not extract only non-taxable capital. It extracts a proportional fraction of gains and capital.

Annual abattement after 8 years

| Situation | Annual abattement | |---|---| | Single, widowed, divorced | EUR 4,600 | | Couple (joint filing) | EUR 9,200 |

8-year abattement condition

Condition: 8 years of contract age (not contribution age). Renewable each calendar year.

Tax rates by contribution date (post-2017)

| Situation | Rate | |---|---| | Contract < 8 years | PFU 30% (12.8% IR + 17.2% PS) | | Contract ≥ 8 years, total contributions < EUR 150,000 | 24.7% (7.5% IR + 17.2% PS) after abattement | | Contract ≥ 8 years, total contributions ≥ EUR 150,000 | 30% on fraction above EUR 150,000 of **net contributions** |

150k threshold household basis

The EUR 150,000 threshold is assessed across all AV contracts of the household.

Contributions before 27 September 2017

Degressive PFL rates (35% / 15% / 7.5%) by contract age.

PS rate on AV unchanged

PS rate on AV: 17.2% unchanged (excluded from LFSS 2026 increase).

1. Gain d'acquisition (at vesting)

| Attribute | Detail | |---|---| | Nature | **Salary income** (traitements et salaires) | | 2042 box | 1TT / 1UT | | Tax | Progressive IR schedule (after 10% salary abattement on total salaries) | | Social contributions | CSG/CRDS 9.7% + salarial contribution 10% (qualifying plans, within caps) |

2. Plus-value de cession (at sale)

| Attribute | Detail | |---|---| | Nature | PV mobilière | | Tax | PFU **31.4%** for disposals from 2025 (12.8% IR + 18.6% PS) or barème on option | | Qualification | "Revenus du patrimoine" (L. 136-6 CSS) → PS 18.6% from 2025 |L. 136-6 CSS

Classic trap and strategy for RSU

Classic trap: treating the acquisition gain as a standard capital gain. It is first and foremost salary (barème), subject to CSG 9.7% and salarial contribution 10%. Only the subsequent appreciation (vesting value → sale price) is a capital gain. Strategy: for massive vesting (> 1.5× annual salary), consider the quotient pour revenus exceptionnels (coefficient 4) to smooth across brackets. Useless if already at TMI 45%.

Tax rate on disposal gain by tenure

| Tenure in the company at sale date | Total rate (2025 disposals) | |---|---| | **≥ 3 years** | **31.4%** (12.8% IR + 18.6% PS — PV mobilière) | | **< 3 years** | **50%** (30% IR + 20% PS — specific salarial contribution) |

Early departure penalty

Early departure penalty (< 3 years) is severe. Factor into departure decisions.

BSPCE issuing company eligibility criteria

SA or SAS incorporated in France; Registered < 15 years; Unlisted or listed on SME compartment; Subject to IS; Capital ≥ 25% held by natural persons; No restructuring history (merger, demerger, takeover). If conditions not met: requalification as salary → progressive IR + full social contributions.

Stock-option regime by plan period

| Plan period | Regime | |---|---| | Before 2012 | Favourable specific schedule (by holding period) | | 2012–2016 | Salary (IR barème + specific social contributions) | | After 2017 | Salary (barème) + salarial contribution 10% on qualifying plans |

Excess discount rule

Excess discount (rabais excédentaire): difference between market price at grant and exercise price, above 5% → taxed as salary at exercise. Always consult the plan to determine the applicable regime.

PEE features

| Feature | Detail | |---|---| | Employer match (abondement) | IR-exempt + PS-exempt within caps | | Match cap | ~EUR 3,709 per beneficiary (8% PASS — verify annually) | | Lock-up | 5 years (early exit for marriage, 3rd child birth, home purchase, job loss, etc.) | | Exit after 5 years | **IR-exempt**, only PS 17.2% on gains |

PERCO/PERO features

| Feature | Detail | |---|---| | Exit | At retirement — annuity or lump sum | | Tax at exit | Same as individual PER (contributions at barème, gains at PFU) | | Match cap | ~EUR 7,418 (distinct from PEE cap) |

Priority order for employee savings envelopes

| Priority | Envelope | Why | |---|---|---| | 1st | PEE + employer match | Match = 50–300% instant return — unbeatable | | 2nd | PERCO/PERO + employer match | Same logic, retirement lock | | 3rd | Individual PER | Only TMI deduction, no match |

Golden rule on employer match priority

never contribute to an individual PER before saturating the employer match on PEE + PERCO. The match is free money.

PER lump sum exit taxation

| Component | Tax treatment | |---|---| | **Contributions (previously deducted)** | Progressive IR schedule (barème) — treated as income | | **Investment gains** | PFU: 12.8% IR + PS (17.2% before 01/01/2026; 18.6% from 01/01/2026) |

PER gains classification and trap

PER gains are "produits de placement" (L. 136-7 CSS). Trap: a lump-sum exit on contributions at TMI 45% is nearly neutral — same tax as a normal income year. Fractionate the exit over multiple years if possible.L. 136-7 CSS

Conservative default assumptions

| Ambiguity | Default | |---|---| | PFU vs barème unclear | Apply PFU (simpler, no global commitment) | | RSU gain classification unclear | Treat as salary (acquisition gain) | | BSPCE tenure unclear | Assume < 3 years (50% rate — conservative) | | PEA age unclear | Assume < 5 years (taxable) | | AV abattement eligibility unclear | No abattement applied | | PS rate unclear for 2025 income | Apply 18.6% for PV mobilières, 17.2% for dividends/interest |

Key legal references table

| Rule | Article | |---|---| | PFU | art. 200 A CGI | | Option barème | art. 200 A-2 CGI | | Dividend 40% abattement | art. 158-3° CGI | | Capital gains on securities | art. 150-0 A to 150-0 D CGI | | Prélèvements sociaux | art. L. 136-1 et seq. CSS | | PS differentiation (patrimoine vs placement) | art. L. 136-6 and L. 136-7 CSS | | LFSS 2026 CSG increase | loi n° 2025-1403, art. 12 | | RSU / AGA | art. 80 quaterdecies CGI | | BSPCE | art. 163 bis G CGI | | Stock-options | art. 80 bis CGI | | PEA | art. 163 quinquies D CGI, art. L. 221-30 CMF | | Assurance-vie rachats | art. 125-0 A CGI | | AV abattement | art. 125-0 A-I-2° CGI | | AV 150k threshold | art. 125-0 A-I-2° bis CGI | | PEE | art. L. 3332-1 et seq. Code du travail |