Article 25 bis of the 2025 Finance Act on the taxation of management packages introduces new provisions regarding their taxation.
How will they now be taxed?
The gain on disposal will be split into two parts:
- A portion subject to the capital gains regime for securities (PFU at 30% + CSHR 3%/4%), but capped at 3 times the growth in value of the company issuing the securities over the holding period.
- The surplus taxed as a salary (progressive scale up to 45% + CSHR 3%/4%) and subject to a new flat-rate social contribution of 10%.
What questions remain?
- How do you prove that the acquisition of shares is not linked to the duties of an employee or director?
- Is there any exemption for start-up founders or long-term entrepreneurs?
- What is the impact on current AGA, stocks and BSPCE plans?
- What is the impact on the ManCo?
When does this apply?
To all transfers taking place the day after the Finance Act is enacted.
To find out more about on how this reform came about, its implications and consequences, read our latest Tax Newsletter.
