The tax regime applied to Imerys shares, which is set out below, is the regime resulting from the French legislation in force in January 2016. The following information concerning individual shareholders who are domiciled in France for tax purposes is just a simple summary of the applicable tax regime, and is provided for guidance purposes only.
The tax regime applied to Imerys shares, as set out below, results from current French legislation as of January 2016. The following information concerns private individual taxpayers domiciled in France for tax purposes. This simple summary of the applicable tax regime is given for guidance only.
For further details regarding the tax regime that applies in your situation, we invite you to seek advice from your financial intermediary and from the tax authorities.
In addition, in attachment is CACEIS Corporate Trust’s 2016 tax memo for registered shareholders (to follow). The aim of this annual memo is to set out the main changes in the tax framework resulting from the latest finance and social security funding laws which affect the assets held in accounts.
Applicable provisions for private individuals domiciled in France for tax purposes
French Wealth Tax (ISF)
For the 2015 estimated French Wealth Tax return, the Imerys share value to select is:
- either the closing price at December 31, 2015, i.e. 64.42€;
- or the average closing price for the last 30 trading days of 2015, i.e. 62.49€.
Taxation of dividends (except when held in an Approved Share Savings Scheme, or PEA)
Tax regime for dividends received in 2015:
Dividends distributed to private individuals are taxed as investment income, i.e. a 21% flat-rate applicable to all dividends and assimilated payouts, whether from France or other countries.
The dividends must be taken into account when determining taxable income for income tax purposes (in the investment income category) for the year in which they were received.
In this case, taxpayers benefit from a 40% allowance on the received dividend amount.
Dividends are obligatorily subject to the progressive scale for income tax, calculated after application of the 40% allowance.
Taxpayers whose reference taxable income for the year before last is less than €50,000 (for single individuals) or €75,000 (for taxpayers who file jointly) may request dispensation from the payment of this levy. This dispensation request is made, under the taxpayer’s responsibility, by producing a sworn statement from his/her securities management bank that his/her reference taxable income is less than the above-mentioned amounts. the request must be made by November 30 at the latest of the year preceding the payment of the income in question (statement to be submitted by11/30/2014 entailing dispensation in 2015).
The obligatory levy does not apply to income from securities held in a share savings plan (PEA).
The application mechanism for social contributions (CSG, CRDS, additional social levies and contributions) is as follows:
Social levies (currently at a total rate of 15.5%) are withheld at source for all distributed income (whether or not eligible for the 40% allowance) originating in France or elsewhere.
As a result of obligatory taxation under the progressive scale for income tax, the partial deductibility of the CSG contribution now covers all dividends, with the 5.1% deductible fraction.
Taxation of capital gains on disposal
Capital gains represent the difference between the sale price (less fees and taxes) and the purchase price (plus fees and taxes) of an Imerys share.
For capital gains realized in 2015:
Capital gains on transfers realized by private individuals will be subject to the progressive scale for income tax after deduction of an allowance taking into account the length of time since the seller gained ownership of the securities:
- 50% allowance if the securities have been held for at least 2 and less than 8 years;
- 65% allowance if the securities have been held for 8 or more years.
The transfer of registered securities has no impact for tax purposes, as it actually involves a transfer of securities, and not a disposal for tax purposes. This transaction is completely neutral in terms of the taxation on capital gains on disposal of investment securities.
Social levies (currently at a total rate of 15.5%) and exceptional tax on high revenus (3% or 4%) will be withheld at source for all distributed income (without taking into account the flat rates).
Monitoring for tax purposes
A tax form (IFU) relating to the dividend payment, and to any disposals made during the course of the year will be sent to you in January of the following year.
If you are a registered Imerys shareholder, we would add that CACEIS Corporate Trust services do not provide a calculation of the amount of capital gains or losses. We therefore recommend that you keep all the transaction slips, which will enable you to draw up your tax return.