FACTSHEET FACTSHEET Tax simulators 5 6 Your 2018 tax return Your 2019 tax return for income in 2017 for income in 2018 What is new this year? What tax changes are implemented? The elements of taxation in this factsheet apply to French residents for tax purposes. The elements of taxation in this factsheet apply to French residents for tax purposes. The only change is an increase in the social contributions rate from 15.5% to 17.2% When you fill out your tax return in 2019, you will have the choice between the current on capital gains on sales and any fractional rights. mechanism and the 30% flat tax for the taxation of your investment income, including dividends received in 2018 and capital gains made in 2018. Capital gains taxation on sales Capital gains taxation on sales (a) and any fractional rights DATES DATES • Social contributions: 17.2% Shares • Social contributions: 17.2% • Income tax based on a progressive scale, after any deductions for seniority from THE PAYMENT OF TAX acquired • Income tax based on a progressive scale, after any deductions for BEFORE seniority: 50% for share seniority of between two years and less than THE PAYMENT OF capital gains made on sales: 50% for share seniority of between two and less than ON DIVIDENDS RECEIVED 01/01/2018 eight years, 65% for share seniority of at least eight years. TAX ON DIVIDENDS eight years, 65% for share seniority of at least eight years. IN 2017 IS CARRIED OUT OR RECEIVED IN 2018 Reminder: The tax authorities consider compensation for fractional rights as a capital IN TWO STAGES: • 30% flat tax on capital gains on sales (without taking into account any IS CARRIED OUT gain on sale without deduction. This is included on your tax reporting form (IFU). 1. In 2017 when dividends are paid deductions for seniority). IN TWO STAGES: • If you have sent a request to your 1. In 2018 when dividends (a) Fractional rights correspond to compensation received for the portion of the share that cannot be account manager for exemption Shares • Social contributions: 17.2% distributed if the number of shares that you own at the time of the free share attribution is not a multiple from the 21% advance withholding acquired are paid of the transaction multiple. • Income tax based on a progressive scale, without taking into account • If you have sent a request to on dividends before November 30, AFTER any deductions for seniority. your account manager for 2016, only the social contributions 01/01/2018 exemption from the 21% ad- of 15.5% have been withheld; OR vance withholding on divi- • If you did not fulfill the require- dends before November 30, ments to benefit from this exemp- • 3 0% flat tax on capital gains on sales (without taking into account any Dividend taxation tion, social contributions of 15.5% deductions for seniority). 2017, only the social contribu- have been withheld along with an tions of 17.2% will be withheld; • Social contributions: 15.5% advance withholding of 21%. • If you do not fulfill the requi- (already withheld in 2017 when dividends were paid) rements to benefit from this • Income tax based on a progressive scale on the amount of gross dividends after 2. The balance in 2018 when you exemption, social contributions the 40% deduction, minus potential handling fees. pay your 2017 income tax. Taxation of dividends of 17.2% will be withheld along (regardless of the acquisition date of shares) with an advance withholding of 12.8% (instead of 21% pre- • Social contributions: 17.2% • 30% flat tax on capital gains viously), i.e. a total withholding • Income tax based on a progressive on the gross amount of dividends of 30%. Two scenarios that scale on the amount of gross dividends OR (without taking into account provide exemption after the 40% deduction. the 40% deduction). 2. The balance will be applied in 2019 when you pay your from capital gains tax 2018 income tax, accord- ing to the taxation method Having a share savings plan, and keeping your shares for a period of five years Choice of taxation method chosen. from the account opening date. The capital gains realized after this period are only subject to social contributions. Important: shares from another account cannot be FOCUS ON The choice between the current mechanism and the 30% flat tax must be made in 2019. transferred to a share savings plan. Only transfers from the share savings plan’s cash For any given year, the mechanism chosen must be the same for the capital gains tax and account can be used to invest in shares. The cash investment limit is €150,000 per plan. ISF-IFI that of the dividends tax. Your entire securities portfolio must be taxed in the same manner. Making a gift is still fully exempt from rights, taxes and social contributions up to You may however choose a different mechanism each year. Air Liquide therefore advises maximum amounts set by French law. Unrealized capital gains on shares are then tax you to assess your overall taxation of dividends and capital gains from sales using both exempt, as long as the transaction is reported to the tax authorities (see factsheet 11). As of 2018, the French wealth tax methods before making your decision. Plan to make your end-of-year gifts from September. (ISF) has been replaced by the French wealth tax on real estate (IFI) which no longer applies to securities. The “ What is new with shareholder taxation? ” web conference, presented by the Group’s experts, can be found on airliquide.com/Shareholders. 34 35