Capital gains realised by individuals resident in France
The indications below apply to capital gains realised on sales after 1 January 2017 (tax return filed in 2018 and tax due in 2018).
- Details of declaration
Any net capital gain or loss realised on a disposal of shares must be declared on a special form (no. 2074) enclosed with the income tax return.
Under certain conditions, and if the taxpayer's financial intermediaries provide details of the realised capital gains or losses, the taxpayer may be exonerated from filing this declaration.
- Income tax
Capital gains and losses qualify for a 50% allowance if the securities have been held for two years or more, or 65% if held for eight years or more.
NB: capital losses after deducting the allowance can be offset against gains of the same type realised during the same year or during the following ten years (but not against total income).
The net capital gain is then subject to application of the income tax bands.
Note also that before deducting the allowance, net capital gains are subject to the 15.5% social security contribution.
- Deferred taxation of securities sold
(As a reminder, the tax implications of public exchange offers made by BNP for Paribas in 1999)
Although share exchange operations are treated as taxable disposals, French resident shareholders were still able to request a deferral of their tax liability.
NB: in practice, shareholders who did not exceed the threshold that triggered taxation of capital gains on securities (FRF 50,000 at the time, i.e. EUR 7,622) had no interest in deferring their tax liability.
For the rest, requesting deferral of tax had the effect of withdrawing the exchange operations from the transfer threshold and deferring taxation of capital gains until they sold the securities received under the swap for a consideration (BNP Paribas shares today, as the merger between BNP and Paribas in 2000 had no impact on the deferral).
The sale of the securities concerned by the deferred taxation entails the end of the deferral and the corresponding taxation of the capital gain whose taxation was deferred.
Capital gains realised by natural persons not resident in France
Persons not resident in France are exempted from taxation of capital gains on sales of BNP Paribas securities (2).
(2) Except where the seller is a resident of a non-cooperative state or territory, in which case it will pay 75% tax in France on the capital gain.