Within a PEA, capital gains are in principle exempt from income tax after five years. The new 2024 finance law returns to this principle. Explanations.
You may know this if you, like 6.5 million people, have a stock savings plan (PEA). One of its main advantages is advantageous taxation.
5 years after opening a PEA, and in the absence of withdrawals in the meantime, the capital gains made are no longer taxable. They are then only subject to social security contributions, amounting to 17.2%. A principle which applies to PEAs opened since January 1, 2018. For PEAs opened before, capital gains are subject to a different social security contribution rate, when the exit occurs after the 5th anniversary.
A government amendment, which became article 8 of the finance law for 2024, came to put a small dent in the principle of exemption from taxation of capital gains 5 years after the opening of the PEA.
| Detention period | Consequence of withdrawal | Taxation of earnings | Social contributions on earnings |
|---|---|---|---|
| Before 5 years | Mandatory closure of the plan | Flat tax of 30% | |
| 5 years and over | None (payments remain possible after a partial withdrawal) | Exemption | Yes, in all cases |
Taxation applicable since May 2019 (promulgation of the Pacte law)
Unlisted bonds redeemable in shares (ORA) are targeted
As a reminder, the Pacte law made eligible for the PEA unlisted bonds redeemable in shares (ORA) small and medium-sized businesses and mid-sized businesses (SME-ETI). These instruments are widely used in the world of investment capital, in particular to overcome valuation conflicts between historical managers and investors wishing to enter the capital, explains the amendment.
From May 24, the capital gain realized in the event of withdrawal of bonds reimbursable in shares (ORA) from a PEA-PME, that is to say a share savings plan financing SMEs or ETIs (whose operation is similar to that of the classic PEA) will be taxable, regardless of whether the plan is more or less than 5 years old. This principle also extends in the event of withdrawal of unlisted shares received as redemption of ORA.
The finance law actually came to give full effect to article 157 of the general tax code, which provides for an exemption ceiling for capital gains from the sale or withdrawal of these unlisted ORA. Indeed, this cap, put in place by the Pacte law, was the counterpart of the eligibility of these new securities for the PEA-PME. However, this anti-abuse measure was not applied after 5 years of holding the plan. From now on, in any event of withdrawal of the PEA-PME, only the fraction which exceeds twice the acquisition price of these bonds is subject to the single flat-rate levy of 30% (or flat tax). Below, capital gains will remain untaxed.
Withdrawal before 5 years under conditions
IF the funds invested in a PEA are still available, you should know that any withdrawal made before 5 years leads, in principle, to the closure of the PEA and therefore the sale of the securities held there.