Lighter taxation of free shares (Macron act)

Article 135 of the act of 6 August 2015 reforms the regime for shares granted free of charge to employees and executives. The acquisition gain is taxed under income tax according to the rules for capital gains on securities, after holding-period allowances, and is no longer subject to the specific employee contribution. The employer contribution is reduced to 20% and becomes due on the acquisition date instead of the grant date; SMEs that have never paid dividends are exempt up to the social security ceiling per employee. The minimum vesting period falls from two years to one, with a combined vesting and holding period of at least two years. The regime applies to shares whose grant is authorised by an extraordinary general meeting held after the act's publication.