You removed 5,000 euros of your life insurance or made a withdrawal from an investment this year? Do you think everything is automatically declared and correctly taxed? This is false. In France, taxation is based on a declarative principle: banks and insurers transmit part of the information, but the taxpayer remains responsible for its accuracy. “Some data is reported via financial institutions, but the reporting responsibility remains that of the taxpayer,” reminds Arnaud Koytwealth management advisor.
The trap is reinforced by the pre-filled declaration, which gives a false sense of security. Many savers validate without checking, thinking that everything has already been processed. However, the tax administration, via impots.gouv.frcross-references the data without always reconstituting the entire situation, particularly in the case of multiple detentions. In practice, when investments are held withFrench establishmentstheir existence is known to the tax authorities, but vigilance is mainly carried out during cash outflows. “As soon as there is a withdrawal, establishments have the obligation to transmit these elements”specifies Arnaud Koyt.
Life insurance: redemption, an underestimated risk area
On a life insurancegains are only taxed in the event of redemption. Each withdrawal includes a share of capital and a share of taxable gains, calculated proportionally. “The client often thinks of only withdrawing his capital. This is incorrect”underlines Arnaud Koyt.
After 8 yearstaxation depends in particular on the total amount of payments, with rates that can range from 7.5% to 12.8%excluding social security contributions, according to the rules specified by impots.gouv.fr. Each insurer only knows its own contracts, the taxpayer can apply the wrong rate by validating its declaration too quickly. “He can make a mistake and lead to regularization”warns the CGP.
PEA, PER: tax advantages, poorly understood
The PEA offers an exemption from income tax after 5 yearsbut the winnings remain subject to social security contributions, currently 17.2% according to the rules in forcewith a possible evolution linked to recent reforms. The rate depends in practice on the date of winnings and the time of withdrawal. “Some people think that after five years there is nothing more to pay. This is false”insists Arnaud Koyt.
Concretely, a withdrawal before 5 years leads to the closure of the plan with immediate taxation, while a withdrawal after this period allows you to benefit from the income tax exemption, excluding social security contributions.
Same logic for the PER : payments can be deductible on entry, but taxation applies on exit. “Some employees think that profit-sharing or participation is deductible. This is not the case »he recalls.
Securities accounts: be careful with foreign platforms
Securities accounts (CTO) opened in France are subject to automatic transmission to the tax authorities. On the other hand, some foreign platforms require manual procedures. “You sometimes have to collect the documents yourself to declare capital gains”underlines Arnaud Koyt.
Tax audit: it’s no longer the amounts that count
Controls today rely on cross-referencing data. “What attracts attention are the inconsistencies between income, financial flows and assets”explains Arnaud Koyt.
A simple discrepancy can be enough: undeclared account, atypical flows or poorly reported income. And in some cases, the bill can reach several thousand euros. The administration can in fact go back several years. For example, any account held abroad must be declared, even without income. In case of forgetting, the fine reaches 1,500 euros per accounteven 10,000 euros in some cases, depending on impots.gouv.fr. Even inactive, it remains reportable. “Many people think that everything is transmitted automatically. This is not the case »insists the advisor.
Avoiding mistakes: the 3 essential reflexes according to an expert
- First reflex: never validate without checking. The data must be compared with the IFUstatements and accounts held. “You have to be able to prove your good faith”insists Arnaud Koyt.
- Second reflex: get support as soon as the situation becomes more complex. Multiplication of accounts or investments abroad make the rules technical.
- Finally : make a regular inventory of your assets. A forgotten account can be enough to trigger a check. “It is not because an account does not generate income that it should not be declared”he recalls.
