Although your funds are available in your Plan d'épargne en actions (PEA) Account at any time, to benefit from all the tax advantages of a PEA, you must keep it open for at least 5 years (measured from the first day a cash deposit is made into the PEA) without making any withdrawals, except for two limited withdrawal cases described below. If a withdrawal is made prior to the fifth year anniversary that does not qualify for one of the two cases, then your PEA Account will close automatically, and you will be subject to French capital gains tax that would apply to your regular trading account. Please consult with your tax advisor if you plan to make a withdrawal before the fifth year anniversary.
Permissible withdrawal cases before the Fifth Year Anniversary
You are permitted to withdraw, before the fifth year anniversary, for the following two cases:
- to fund the creation or takeover of a company,
- due to redundancy, disability or early retirement of the holder (or his/her spouse or PACS partner).
In each of the two permissible withdrawal cases, you must provide sufficient documentation to Interactive Brokers to establish your qualification for such permissible withdrawal. For more details of these permissible withdrawal cases, please refer to KB article: Early Withdrawal from Plan d'épargn en actions (PEA) Accounts.
Withdrawals after the Fifth Year Anniversary
After the fifth anniversary, the tax privileged status for your PEA Account will have achieved so that withdrawals will no longer be subject to restrictions. If you make a withdrawal to fund the creation or takeover of a company, you will no longer be able to make new cash deposits into the PEA Account. Other types of permissible withdrawals have no impact on cumulative cash deposits that can be made into the PEA Account.
The material contained herein is for general information only and is not intended to serve, and should not be construed as, tax, legal or investment advice. Please consult your own advisors.