The French Government has published decree number 2014-283 of March 4, 2014, increasing the ceiling for investment in the tax-exempt share savings plan (PEA), and introducing a new share savings plan (PEA-PME) exclusively for investment in small- and medium-sized businesses (SMEs). The new savings plan aims to increase the flow of private savings into SMEs that are seen as a driver of economic growth and employment.
The PEA share savings plan is an existing investment vehicle, offering taxpayers total exemption from tax, with the exception of social levies, on dividends and capital gains derived from shares or titles in a company, irrespective of size, after a five-year holding period. The decree of March 4 raises the PEA investment ceiling from EUR132, 000 (USD183, 190) to EUR150, 000.
Offering the same tax advantages as the original share savings plan, the newly launched offering “PEA-PME” is available to all taxpayers, for investment in an SME with fewer than 5,000 employees and an annual turnover of less than EUR1.5bn or assets of less than EUR2bn. Taxpayers may invest up to EUR75, 000 in the plan.
