I HAVE SECURITIES, HOW ARE THEY TAXED?

The income from your financial investments is taken into account for the calculation of your tax in the category of income securities and movable capital, except exemptions.

Movable capital income received in 2017 was subject to a compulsory but non-statutory lump-sum levy (this is a tax advance) that took place when these revenues were paid.

This levy, 21% for dividends, 24% for interest, was made by your bank. Social security contributions were also paid at an overall rate of 15.5%

Financial investment income will be included in your 2017 income tax return (to be filed in 2018) and will be subject to the income tax schedule. The compulsory lump sum deduction paid at source constitutes a tax credit deducted from your tax due for the year of collection of income.

The investment income derived on or after 1 st January 2018 are subject to the time of collection to a non compulsory levy withholding of an overall rate of 30% (12.8% for the income tax and 17 , 2% for social security contributions).

The final income tax will be calculated on the basis of the items that will be included in your income tax return in the year following the year of income collection. Income from financial investments will then be subject to a flat-rate flat tax (PFU) of 12.8% or on an explicit, global and irrevocable option, at the progressive income tax schedule.

The compulsory lump sum deduction at source as a down payment will be deducted from the income tax due for the year in which it was operated. Any surplus will then be returned.

Update on the 29/01/2018

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