How does the taxation of the PEE work?

The taxation of the Business Savings Plan (PEE) is one of its major assets. Indeed:

✅ The amounts paid from participation and profit-sharing are exempt from income tax if they are invested in the PEE (excluding social contributions).

✅ The contribution paid by the company is exempt from income tax (still subject to social security contributions of 17.2%).

✅ Capital gains generated from investments are exempt from income tax after 5 years, but remain subject to social contributions.

⚠️ Attention: the employee’s voluntary payments do not benefit from a tax deduction, unlike those paid into a Retirement Savings Plan (PER).

👉 Concrete example: Paul invests €5,000 in his PEE (participation + contribution). After 5 years, his savings are valued at €7,500. The €2,500 of capital gains are not taxable, only social contributions are due.