Early Withdrawal from Plan d'épargn en actions (PEA) Accounts

Interactive Brokers Ireland Limited (IBIE), in accordance with article L. 221-32 of the CoMoFi, authorizes, under certain conditions, withdrawals from a Plan d'épargne en actions (PEA) account before the fifth anniversary of your first deposit into the PEA account (the "Fifth Anniversary"), without leading to the closure of the plan (such withdrawal, an "Early Withdrawal").

The cases of authorised Early Withdrawals as well as the required justification documents are described in this KB article.

Please note: A PEA holder will be able to request an Early Withdrawal directly from the Transfer & Pay section in the Client Portal. If you withdraw from your PEA account before the Fifth Anniversary, you will need to provide the reason for transfer by selecting one of the exceptional transfer reasons.

Required documents for transfer processing

See below the list of required documents in order for IBIE to process your withdrawal request.

Early withdrawals of a PEA for the creation or takeover of a business

Article L. 221-32 of the CoMoFi authorizes, under certain conditions, withdrawals from the PEA before the Fifth Anniversary, without leading to the closure of the plan, if they are intended for the creation or takeover of a company.

In order to benefit from the provisions of the second paragraph of II of Article L. 221-32 of the Monetary and Financial Code, the holder of the PEA needs to provide to IBIE a sworn certificate that the sums or values of which he requests the withdrawal, are intended to be allocated to financing the creation or takeover of a company under the conditions set by the second sentence of the 2 of II of article 150-0 A of the general tax code. The company being created or taken-over must, in both cases, be run or managed by the PEA holder, the spouse or partner bound by a civil solidarity pact (PACS), the ascendant, or descendant of the PEA holder.

Within four months following the withdrawal,the PEA holder must send to IBIE the following documents for each of the following cases:

Withdrawal Reason Description Acceptable Documents  
FOR AN INDIVIDUAL BUSINESS OR MICRO-ENTREPRENEUR STATUS  
Company Creation

  • Creation in progress of a sole proprietorship company (2 supporting documents)

  1. Receipt for fliling the business creation file (RDDCE) with the mention "validated" issued by the "Guichet unique des formalités d'entreprises".

  2. Signed self-certification

  
Company Creation

  • Successful creation of an individual business (2 supporting documents)

  1. Signed self-certification

  2. Receipt for registration in the national registration of companies in the national register of companies "RNE" (INPI document entitled "Guichet unique des formalités d'entreprises" including the mention "validated" delivering the unique identification number (SIREN number))

or

  1. K-B is extract

 

  
Company Take-Over

  • Takeover in progress of an individual business (2 supporting documents)

  1. Signed self-certification

  2. Agreement for the sale of the business

  
Company Take-Over

  • Successful takeover of an individual business (3 supporting documents)

  1. Receipt for registration in the national register of companies "RNE" (INPI document entitled "Guichet unique des formalités d'entreprises" including the mention "validated" delivering the unique identification number (SIREN number))

  2. Signed self-certification

  3. Deed of transfer

 
FOR A COMPANY  
Company Creation

  • Creation of a company in progress (3 supporting documents)

  1. Receipt for filing the business creation file (RDDCE) with the mention “validated” issued by the "Guichet unique des formalités d'entreprises".

  2. Signed self-certification

  3. Draft statutes identifying the person who exercises effective control of the company

  
Company Creation

  • Successful creation of a company (3 supporting documents)

  1. Signed self-certification

  2. Receipt for registration in the national register of companies "RNE" (INPI document entitled "Guichet unique des formalités d'entreprises" including the mention "validated" delivering the unique identification number (SIREN number))

or

  1. K-B is extract

  2. Share acquisition contract identifying the person who exercies effective control of the company

or

  1. Status

 
Company Take-Over

  • Takeover of a company in progress (2 supporting documents)

  1. Signed self-certification

  2. Draft statutes identifying the person who exercise effective control of the company

 
Company Take-Over

  • Successful takeover of an individual business (3 supporting documents)

  1. Receipt for registration in the national register of companies "RNE" (INPI document entitled "Guichet unique des formalités d'entreprises" including the mention "validated" delivering the unique identification number (SIREN number))

  2. Signed self-certification

  3. Deed of transfer

 
ACQUISITION OF SCOP SHARES (COOPERATIVE PRODUCTION COMPANY)  
Company Take-Over

  • Acquisition of shares (2 supporting documents)

  1. Signed self-certification

  2. Subscription certificate issued by the SCOP

or

  1. Modified statutes mentioning a new capital contribution and the obtaining of associated status

 
REGULATED LIBERAL PROFESSION  
Company Creation

  • Installation for the exercise of a regulated liberal profession (4 supporting documents)

  1. Signed self-certification

  2. Receipt for registration in the national register of companies "RNE" (INPI document entitled "Guichet unique des formalités d'entreprises" including the mention "validated" delivering the unique identification number (SIREN number))

  3. Registration receipt with URSSAF

  4. Copy of the statutes indicating that the account holder has the status of associate (in the case of Professional Civil Society SCPs)

 

 

In case the transaction is carried out by the spouse or partner bound by a civil solidarity pact (PACS), the ascendant or descendant of the plan holder, the following justification must be provided by the plan holder.

What supporting documents should be attached to the withdrawal request if the transaction is carried out by a person other than the account holder?

For the spouse:

  • Marriage certificate extract

  • Or Copy of the family record book

For an ascendant:

  • Copy of family record book

  • Or Birth certificate

For a descendant:

  • Copy of family record book

  • Or Birth certificate

For the PACS partner:

  • Birth certificate extract mentioning the conclusion of the PACS

  • Or certificate established by the Registry of the District Court or the notry who recorded the PACS declaration

 

Additional considerations:

Conditions of application:

• The total or partial release of assets takes place in the form of a single payment and cannot therefore give rise to successive withdrawals.

• The sums released must be used in full to finance the operation (constitution of share capital, purchase or rental of business, installation costs, equipment, etc.).

• The withdrawal is made up to the needs linked to the creation or take-over.

• The transaction can be carried out by the holder, their spouse, their PACS partner or one of their adult children (see the list of supporting documents to be provided by the person other than the account holder).

• The company created or taken over must be located in France or within the European Union (in this case, the supporting documents are equivalent and must be the subject of sworn translations into French).

• The industrial, commercial, artisanal or agricultural activity can be operated in the form of an individual enterprise or a company, provided, however, in the latter case, that the beneficiary exercises effective control (see definition below).

 

Who is considered to exercise effective control of the company?

Anyone who:

• Either holds, personally or with his spouse, his partner linked by a PACS or his cohabitant, his ascendants and descendants, more than half of the capital of the company, without his personal share being less than 35% of it,

• Either has the status of manager of the company and who holds, personally or with his spouse, his partner linked by a PACS or his partner, his ascendants and descendants, at least one third of the capital of the latter, without his personal share may be less than 25% and provided that another shareholder or unit holder does not hold directly or indirectly more than half of the capital.

 

What if the supporting documents were not provided to Interactive Brokers Ireland Limited within four months of the withdrawal?

If Interactive Brokers Ireland Limited does not receive the supporting documents within four months of the withdrawal for the creation or takeover of a business, the withdrawal would no longer qualify as a permissible withdrawal under the PEA regime. Accordingly, the PEA account will automatically close when the four-month window expires.

 

Loss of Employment, Disability or Early Retirement

Article L. 221-32 of CoMoFi authorizes, under certain conditions, withdrawals of sums or values of the PEA before the expiration of its fifth year, without leading to the closure of the plan, on the condition that these withdrawals result from the loss of employment, disability as provided in 2° or 3° of Article L. 341-4 of the Social Security Code or the early retirement of the plan holder or their spouse or partner bound by a civil solidarity pact (PACS).

When submitting a request for withdrawal, the client is requested to provide the following supporting documents, at the time of submitting the withdrawal, depending on the reason for withdrawal:

Withdrawal reason Description Acceptable documents
Loss of Employment

  • The funds being withdrawn are intended to cover expenses due to the loss of employment (self/spouse/partner).

  1. Certificate of Employment

  2. Minutes of Dismissal/Non-Renewal of Officer Role

  3. URSSAF Certification of Cessation of Activity

Forced Early Retirement

  • The funds being withdrawn are intended to cover expenses due to forced early retirement (self/spouse/partner).

  1. Certificate of Employment

  2. Minutes of Dismissal/Non-Remewal of Officer Role

  3. URSSAF Certification of Cessation of Activity

Invalidity

  • The funds being withdrawn are intended to cover expenses related to invalidity (self/spouse/partner).

  1. Invalidity Pension Approval

  2. Invalidity Pension Payments

 

In case the person subject to the loss of employment, disability or the early retirement is not the account holder, the following documents are to be provided:

For the spouse:

  • Marriage certificate extract

  • Or Copy of the family record book

For the PACS partner:

  • Birth certificate extract mentioning the conclusion of the PACS

  • Or certificate established by the Registry of the District Court or the notary who recorded the PACS declaration.

 

 

4. Notes / Tax related information

An early withdrawal in the case of company takeover or creation will have the following impact on your PEA:

• Plan closure : NO

• Taxation: 17.2% on realized gains (Social Contribution Tax).

• IBIE will automatically withhold, report and pay the due tax on behalf of the PEA holder to the DGFIP.

An early withdrawal in the case of the loss of employment, invalidity or forced early retirement will have the following impact on your PEA:

• Plan closure : NO

• Taxation: generally 30% on gains (12.8% Capital Gains Tax + 17.2% Social Contribution Tax); however, clients may have offsetting capital losses outside the PEA account. IBIE is not required to withhold or to compute the taxes for clients in this case.

It is the sole responsibility of the plan holder to make the due reporting and payment. The withdrawal event will be reported by IBIE as part of its annual reporting obligations with respect to PEA accounts.