Taxation Of Investments | Financial Investments

A comprehensive guide to investment taxation

In the following pages, we detail the taxation applied to the various investment transactions. We will try to explain the tax mechanism on the one hand and to give you a maximum of advice and answer all your questions, on the other hand.

At each investment his taxation

 

For each type of investment, we will see how tax is applied. We will use many numerical examples to look at a given situation if one option is better than another.

We will discuss the mechanism of the levy and the related social levies.

Other pages deal in a practical way with the tax declaration of interest or the capital gain.

 

A few rare transactions are entirely tax exempt like the booklets regulated by the State. This is the case, for example, interest on livret A.

Housing savings transactions are exempt from the levy but remain subject to social security contributions.

For the rest, the principle is based on the taxation of interests or the greatest value. You will need to distinguish between them.

Taxation of interest

Taxation of interest

Interest is calculated annually based on the rate of return on the investment. The December 31 bank statement will show you the amount of your annual earnings. They will be reinvested the following year, producing themselves interest. This is the principle of capitalization.

The imposition of the greatest value

The imposition of the greatest value

The greatest value is the difference between the sale and the purchase. For example, if you withdraw from a stock savings plan, the excess value (or loss) will represent the difference in value between the sale of the share (or SICAV or FCP) and its corresponding fraction. purchase.

 

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