Savings income

Can you request a waiver of the non-final lump sum levy?

Publié le null - Directorate for Legal and Administrative Information (Prime Minister)

You're not taxable this year? Your income has gone down? You can request an exemption from the non-final lump sum levy on the gains of your financial investments (interest, dividends) based on your income. You must make this request to your bank before November 30. Service-Public.fr explains the terms and conditions.

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Image 1Crédits: Jérôme Rommé - stock.adobe.com

The single lump sum levy (LUP) is levied by financial institutions on the gains of your financial investments. The single flat-rate levy consists of 12.8% (flat-rate non-discharge levy) and 17.2% social security contributions, i.e. an overall rate of 30%. It applies to the payment of dividends and interest on certain plans and savings accounts.

Income conditions for obtaining the exemption

For interest, you can be exempted from the mandatory non-discharge levy of 12.8%, paid in respect of income tax at the time of payment of interest if your reference tax income for year N-2 was less than €25,000 for a single person or €50,000 for a couple (marriage or CIVIL PARTNERSHIPS).

For dividends, you can be exempted from the mandatory non-discharge levy of 12.8%paid in respect of income tax at the time of payment of the dividends if your reference tax income for year N-2 was less than €50,000 (person alone) or €75,000 if you live as a couple (marriage or CIVIL PARTNERSHIPS).

You must make this exemption request to your financial institution by giving it a sworn certificate before November 30, 2022 for 2023 financial investment income.

FYI  

With this exemption from the compulsory non-discharge levy of 12.8%, you pay only the social security contributions of 17.2%, they are directly levied by your bank for the benefit of the tax administration.

If you forgot to send this exemption request to your financial institution, you will have to check box 2 PO on your next tax return, so that this income is subject to the tax schedule. If you are tax-free, the UTP will be refunded.

Financial products covered by the single flat-rate levy (PFU)

The flat-rate flat-rate levy (PFU) at the 30% : 12.8% (flat-rate non-discharge levy) and 17.2% of social levies concerns:

  • share income (dividends);
  • income from OCPs (Sicav, FCP);
  • fixed-income investment income (bonds, bank savings books, etc.);
  • the revenues of ELPs and ELCs subscribed from 1er January 2018 (first year);
  • realized gains;
  • gains on an AEP closed before 5 years. This measure shall apply from withdrawals and repurchases made on 1 January 2019.

Financial products not covered by the single flat-rate levy (PFU)

The single flat-rate levy (FLP) shall not apply to:

  • stock savings plans (PEAs) older than 5 years;
  • life insurance contracts (for premiums paid before 27 September 2017 and where the capital paid is less than €150,000);
  • wage savings;
  • Housing savings plans (PELs) (under 12 years old) and housing savings accounts (CELs) signed before 2018.

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