What is the taxation of the purchase or sale of gold ?

Until 2005, buyers and sellers of gold had to pay the precious metals tax, also called “TMP”. Since then, the finance law has rectified and redefined the provisions relating to the taxation of gold by the general tax code. The Official Bulletin, for its part, clarified the contours of the application of the said law in BOI-RPPM-PVBMC-20-10.

Taxation on gold: for which products ?

Before 2005, gold could be included in the ISF calculation base, just like many luxury products (horses, sports cars, etc.). From now on, gold and silver are no longer included in the calculation of the IFI (real estate wealth tax).

The new tax on gold only concerns investment gold. The following products are considered as investments:

• Gold coins: they must have a purity of 90% and must have been minted after 1800. The premium must not exceed 80% of the gold price. The coin must also have been legal tender;
• Ingots: their purity must be at least 99.5%.

VAT

VAT concerns all products offered for sale. Its rate is between 5.5% and 20%. However, the taxation of gold creates an exception. No product corresponding to the definition of investment gold (gold coins, bars or ingots) is subject to VAT. You buy an investment gold item at the market price.

All precious metals are not eligible for this exemption. Money, for example, may be subject to VAT. Buyers of silver bars must pay VAT at the rate of 20%. Here again, there is an exception: silver coins which are legal tender are not subject to VAT.

You want to sell gold, whether it is your bars or your gold coins, specialized companies or certain counters can buy back your gold, but the sale of gold is subject to special charges. There are several plans to choose from, depending on what is most beneficial for you.

Article 150 VL of the CGI provides for the possibility for sellers to opt for capital gains tax. To do this, you must respect conditions:

• Be a tax resident;
• Application to all objects (collection and investments), products and jewelry.

To benefit from it, you must be able to prove the origin of the ingot, gold coin or jewelry. An invoice or notarial deed can serve as proof. This document must include the following elements:

• Identity of the purchaser;
• Individual identification of the object: in the event of a group purchase, the identification of each coin or ingot must be recorded. Serial numbers and seals are the most common methods.

If the conditions are not met, the seller will not be able to take advantage of this capital gains tax option.

The capital gains tax is divided into two entities which, together, form a rate of 36.2%:

• 19% tax;
• Social contributions of 17.2%.

Please note that a reduction is provided for detentions exceeding 3 years. Each year, you benefit from a 5% reduction, until you obtain a total exemption from the age of 22.

Finally, any sale must be the subject of a Cerfa 2092 declaration to be filed with the tax administration. It is the seller who must take care of these procedures, except in the case of sale to a professional. In this case, it is the acquiring company which establishes the documents and transmits them.

The classic case remains the flat rate tax on resale. The applicable rate is 11.5%, including 0.5% CRDS. There is a special case which may allow a reduction or even disappearance of this tax. The sale of coins minted before 1800 offers:

• A tax of 6.5%, including 0.5% CRDS;
• Total exemption if the total value of the sale does not exceed 5,000 euros.

The taxation of gold therefore concerns all products for sale. However, there are ways to avoid being subject to regulatory taxes.

The gift and the inheritance

If you wish to give gold to your family, during your lifetime or upon your death, your heirs will be able to benefit from flat-rate reductions linked to their level of parenthood with you, according to the scale:

• Child: 100,000 euros;
• Grandchild: 31,865 euros;
• Brother or sister: 15,932 euros;

The amount of the reduction is reset to zero every 15 years. You can therefore renew the operation at regular maturity, to transmit your assets without paying tax.

If your heirs decide to resell the gold after your death, they can benefit from special taxation linked to real capital gains. The notary's certificate is then a guarantee.

Any undeclared or incorrectly declared inheritance or donation will be subject to a TMP of 11.5%.

The sale of gold in France by non-residents

Non-residents are people who have their tax homes outside France. They are not French residents but nevertheless have authorization to sell precious metals as well as to invest in the purchase of gold and silver. Not being taxed in France, they are completely exempt from French taxes. They remain liable for any taxes linked to their country of origin.

You can make an appointment now with one of our Gold Union advisors, in an agency or via our e-commerce site, to obtain more details regarding the taxation of the gold market.