*Avalible in France only.
A Plan d'Épargne en Actions (PEA) is a tax-advantaged investment account that encourages long-term savings by offering tax benefits after a 5-year holding period. If you withdraw funds from your PEA before reaching the 5-year threshold, it is considered an early withdrawal. Learn more about PEA accounts in our article: What is PEA?
Early withdrawals can either follow the standard rules or fall under special circumstances. The latter may offer more favorable tax implications and could determine whether the PEA account is closed, possibly with certain restrictions.
Key Tax Implications of Early Withdrawals
When making an early withdrawal from a PEA, either both Social Security and Income Tax will apply, or solely Social Security will be applied to any capital gains, depending on the circumstances. The tax rates are as follows:
Social Security Contributions: 17.2%
Income Tax: 12.8%
Therefore, a total tax deduction of up to 30% (17.2% + 12.8%) can be applied to your capital gains from investments made in the PEA account, in the case of a non-exempt early withdrawal before the 5-year lock period.
Standard Early Withdrawal
If you withdraw funds from your PEA before the 5-year period has passed, the following consequences typically apply:
Account closure: The PEA will be automatically closed once you make a withdrawal before the 5-year mark. This means you will no longer be able to make any further deposits or continue benefiting from the tax advantages that come with the account.
Total tax rate of 30%: Any capital gains and dividends from early withdrawals within the first 5 years are subject to a flat tax rate of 30%, which consists of 17.2% social security contributions and 12.8% income tax.
Early Withdrawal with Special Circumstances
In certain special circumstances, you may be able to make an early withdrawal without the typical 30% tax deduction or account closure. These special circumstances include:
Creation or takeover of a business
Dismissal from employment
Disability
Early retirement
Withdrawal of securities subject to winding-up proceedings
Each of these scenarios has its own rules and conditions. For example, in the case of business creation or takeover, the withdrawn cash must be used within 3 months and the business must be personally managed by the PEA holder or their family.
For details on the special circumstances and their respective conditions for early withdrawals, please refer to our PEA Terms and Conditions point 19.5 (Closing the PEA), point 19.6 (Tax Regime), and article L221-32 of the Monetary and Financial Code.
How to Request an Early Withdrawal from PEA
To request an early withdrawal from your PEA, whether under standard rules or special circumstances, please contact our Support Team. For detailed instructions on how to reach our Support Team, refer to the "How can I contact the Shares support?" article.
For standard withdrawals, the PEA will be closed, and applicable taxes will apply.
For withdrawals under special circumstances, you must provide supporting documentation (e.g., disability certificate, death certificate) to validate your request.