Taxation of interest on home-savings plans older than twelve years and annual social levies on plans older than ten years

Article 7 of the 2006 Finance Act limits the income tax exemption on home-savings plans (PEL, Article 157, 9° bis of the General Tax Code) to the interest and bonus earned during the first twelve years of the plan, or until maturity for plans opened before 1 April 1992. Later interest is taxable, with the option of a flat withholding tax. The measure applies to interest accrued and credited from 1 January 2006. In parallel, Article 10 of the 2006 Social Security Financing Act makes the interest of plans older than ten years subject to social levies from 1 January 2006, then every year when credited, instead of at the closing of the plan.