The taxation of investments is one of the most complex in the world. In fact, with the exception of exempt savings accounts, not all financial investments are subject to the same tax. Between the tax to be paid on savings books deducted directly by the bank, the amount of life insurance tax counted only in case of withdrawal and the income from a securities account to be declared at the end of the year. The acquisition and sale of shares may cause income. The taxes applicable to the latter are: taxation of dividends and taxation of capital gains.

Taxation of dividends

Some companies pay a dividend to their shareholders. It is linked to each share and becomes a source of income for the person who receives it. Dividends are subject to a one-off flat-rate withholding tax of 30%. However, it is possible to choose to remain taxable at the progressive scale on income. Dividends from shares are supported as soon as they are paid, including: a flat-rate withholding tax applicable on the gross amount and social security deductions. Dividends should be declared the following year for its maximum values without taking into account the 40% reduction. The exemption allows you to delay the payment of tax. To take advantage of it, you must apply to your financial institutions no later than November 30 of the year before the dividend is paid. If you are more interested, it is possible to opt for the progressive tax investment scale.

Progressive scale taxation

During the year in which the dividend is received, you will not be able to avoid the fixed levy or social security deductions unless you are exempt. When you file your tax return, in the year following the acquisition of the dividend, you choose for a progressive scale of tax, the tax on the fixed levy will be subtracted. If you exceed this amount, the remainder will be returned to you. The choice of the progressive scale will allow you to maintain a 40% reduction in the gross dividend and you are committed to it because it is irrevocable during the year and overall.

Taxation of capital gains

You realize a capital gain when you sell a share on the stock market that is more expensive than you bought it. The advantage is that it is treated as financial income. It is therefore taxable. The tax regime for capital gains from share transfers develops at the end of the methodical taxation at the progressive scale of income tax. However, for the best of you, you can choose for the progressive scale.