Taxation

Taxation on January 1, 2010

The goal of this section is to identify the general principles concerning  perceived earnings. This information, however, does not constitute a summary of the main tax provisions applicable today. It does not include changes that may occur, only those in effect on January 1, 2010.

The following information applies only to shareholders whose tax domicile or main office is located in France.

Earnings from securities (dividends)

Any dividends received are subject to:

- social security withholding of 12.1% :

. CSG (8.2%, of which 5.8% is tax deductible),
. CRDS (0.5%),
. Social security (2%)
. Additional contribution (0.3%),
. Social contribution in aid of low-income household RSA (1,1%).

These contributions are withheld by the payer upon payment of the dividend

- and by shareholder choice, subject to income taxe or to with holding tax of 18%.

If the shareholder choose the income tax : a 40% discount is applied to the total amount. An additional discount is applied to the taxable 60% for a lump sum of €1,525 (or €3,050 per couple). In addition, a tax credit is given, up to 50% of the total amount of dividends received, without exceeding €115 (€230 per couple).

Valuation of securities portfolio for capital tax

(Impôt de Solidarité sur la Fortune)

The share price to be used is up to the shareholder:

. The closing price for the fiscal year: €76.14 on December 31, 2009,
or
. The average closing price for the last 30 trading days of the fiscal year: €73.75 (for 2009)

Historic data

Share price (in euros)	2004	2005	2006	2007	2008	2009
End-of-year share price	72.90	97.00	145.00	107.32	49.64	76.14
ISF average share price	71.99	94.31	119.98	113.01	43.44	73.75

Definition of the purchase price of a Gecina share

Some examples:

- Actual purchase price on the market, including all fees;
- Market closing price the day before the contribution;
- In the event of an inheritance, the closing price the day before the death or an average of the last 30 market prices preceding the death;

Capital gains from the sale of securities

The length of time retained for the appreciation of the tax exemption for the statement corresponds to the transferts intervened 2010 between December 29th, 2009 to December 28th, 2010.

A capital gain is the difference between the purchase price of the shares and the net proceeds received upon their sale on the market.

Capital gains from the sale of securities are subject to social security of 12.1% since january the 1st, 2010.

If the total gross amount from the sale of securities by the tax household for the year exceeds the tax exemption threshold (€25,830 for 2010), the recorded capital gains are in more subject to a fixed taxe of 18%: 

If the shareholder holds onto shares at least six years before selling them, a progressive exemption is given: a discount equal to one-third of the taxable capital gains applied for each year the shares were held beyond the fifth (1).

(1) The length of time the purchased shares were held before January 1, 2006 is deducted from that date, not accounting for old they are. So, for shares held on December 31, 2006, the discount applies only to sales made on or after January 1, 2012, with the exemption applying fully only for sales occurring in 2014 or later.

Specifics regarding shares issued by the Company Savings Plan

(CSP)

Capital gains realized when selling shares issues from a Company Savings Plan are exempt from the 18% flat tax, in accordance with Article 150-0A III 4 of the CGI (general tax code), but they are subject to social security contributions of 12.1%, without any exemption threshold.
Sales carried out as part of a Company Savings Plan do not count toward the €25,830 threshold.