Investor tax reporting services
The Plan d'Epargne en Actions (PEA or share savings plan) is the most popular investment scheme for French individuals. The PEA lets investors manage a portfolio of European securities while benefiting from preferential tax conditions if certain requirements are met.
French PEA
Key Features
| Taxation mechanism | Asset based |
| Annual reporting | ❌ |
Main features
The Plan d'Epargne en Actions (PEA or share savings plan) is the most popular investment regime for French individuals. The PEA aims at encouraging individuals to invest in equity shares while benefiting from preferential tax conditions if certain requirements are met.
The regime is open to French resident investors and requires that the PEA be held for at least 5 years following the first deposit. PEA's success is mostly due to an income tax exemption on any dividends, capital gains and other proceeds generated by the assets—including fund units—held through this regime.
Assets in which the PEA must be invested are strictly determined by the law. Mutual funds established in the EU are eligible for the PEA provided their NAV is permanently invested for a minimum of 75% in shares issued by companies whose operational headquarters are in an EU member state or in an EEA state which has entered into an administrative assistance agreement with France to combat tax evasion and avoidance.
There are two specific saving schemes available to investors in equity funds under certain conditions: the "Plan d'Épargne en Actions" (PEA) and the PEA PME (“Petites et Moyennes Entreprises” - SME).
Benefits of the regime
Investors can benefit from tax exemptions on distributions and capital gains from their mutual fund held in the PEA under certain conditions.
Rebates on capital gains - Distribution reporting
In addition to PEA savings schemes, investors can also benefit from tax exemptions on fund distributions and capital gains related to certain equities held by the fund.
To benefit from those exemptions, investors will need to be informed about the breakdown of distributions and capital gains in order to deduct the portion resulting from such qualifying equities.
Scope of services
- Analysis of eligibility for the regime;
- Calculation or review and reporting of the underlying source of income in case of distribution;
- Daily ratio calculation;
- Regulatory watch on tax and fund reporting;
- Consultancy and fund structuring.
Related content
Contact us
Christian Heinz
Tax Partner, Global Tax Compliance Leader, PwC Luxembourg
Tel: +352 621 33 2247
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