Registered shares are taxed in the same way as bearer shares.
Holding shares can generate two types of earnings:
- Dividends: share of the profit distributed to shareholders according to the company's results;
- Capital gains: gains obtained on the sale of shares, corresponding to the difference between the transfer price and the purchase price.
Dividends and capital gains are both subject to the taxation described below.
The information below relating to the tax treatment of dividends and capital gains on the sale of securities corresponds to the tax system in force at the time of publication. These provisions are of a general nature, are provided for information purposes only on the date of publication, and are subject to change at any time in the context of regulatory changes. Any new tax measure may have an impact provided that you are subject to the tax rules detailed in this communication. Shareholders are advised to contact the tax authorities or to consult their usual advisor for any additional information specific to their situation.
ENGIE cannot guarantee the truthfulness, accuracy and completeness of the information provided and cannot be held responsible for the consequences of the use that shareholders may make of the content of this information.
ENGIE cannot be held responsible for any loss or damage that may arise directly or indirectly from the content of this communication or from the use that may be made of it.
Taxation of dividends
Dividends received from 1 January 2018 are subject to the Prélèvement Forfaitaire Unique (PFU - withholding tax), also known as "flat tax", of 30%. However, it will be possible to opt for the income tax scale and thus keep the 40% allowance in force to date.
Important: if your reference taxable income does not exceed €50,000 for a single person or €75,000 for a couple subject to joint taxation, you may be exempt from the withholding tax of 12.8%. To benefit from this, you need to submit your dispensation request to your financial establishment no later than 30 November of the year preceding the payment of the dividend.
Taxation of capital gains within a securities account
In the same way as for dividends, capital gains on transfers of shares are subject to PFU of 30%.
However, you can opt for the income tax scale and benefit from allowances for holding shares acquired before 1 January 2018; as a reminder, there is an allowance for holding duration set at 50% for shares held for between 2 and 8 years and at 65% for longer than 8 years.
You will therefore need to do your calculations although the flat tax proves, in most cases, to be more favourable.
Good to know: the 2018 finance law now provides for the allocation of depreciations to capital gains in the same year; the taxpayer can therefore no longer decide to allocate his depreciations for the current year and defer them, as he could before, to one of the following 10 years.
Important: the taxation method (PFU or income tax) initially chosen for the dividends or capital gains will apply to all portfolio capital revenue. You will not be able to choose, for example, the Prélèvement Forfaitaire Unique (withholding tax) for taxation of dividends and income tax for taxation of capital gains.