The Plus-Value Tax, more often called the TPV, is a tax on precious metals. This tax, therefore, applies to investment gold and silver, such as bars and coins. When you are looking to resell your gold coins and gold bars, it is important to know the conditions and understand how taxation works on gold investment products and precious metals. Focus on the POS!
How is the TPV calculated?
If you wish to resell a gold (or silver) bar and/or coin, which are so-called investment gold and silver products, a tax may apply on resale. There are two taxes for investment gold, the TPV and the TMP. This tax applies to all precious metals from gold bullion to silver bullion as well as from gold coins to silver coins.
The TPV is calculated on the capital gain, that is to say, the amount you have earned if you resell your product for more than you paid for it.
It, therefore, amounts to 36.2% of the amount of the capital gain made on your investment gold product.
When you choose to invest in gold, it is advisable to preserve this financial heritage over the long term. Indeed, the longer you keep it, the more it will increase in value. We can say that the TPV is advantageous, because it is degressive by 5% per year, from the 3rd year of possession of the product. You should know that this tax is amortized over 22 years.
For these 22 years of past detention, the exemption is total. And in case of capital loss, no tax or duty will be exercised on the sale of your investment gold coins or bullion!
Of course, when selling bullion and/or investment gold coins, you will be able to choose which tax you wish to apply between the TPV and the TMP. The law authorizes the application of the most advantageous tax according to the year in which the product is held.
Eligibility conditions for the TPV
To apply this tax, you must of course meet certain conditions to benefit from it. If these conditions are not respected, the TFMP, the Flat Tax on Precious Metals will be automatically applied to your investment gold product. The TFMP tax is 11.5% of the total amount of the sale.
To benefit from the TPV, you must have:
• The registered purchase invoice, or a registered deed of gift
• The invoice must include a date of purchase. The date must be legible to be able to calculate the tax amount.
• Proof of purchase amount.
• The number of seals or ingots must be indicated.
• The parts must be under closed seals, with the correct seal number.
• Bar numbers must match those on the invoice.
In the event of a deed of gift, it must also be in the name of the person wishing to resell his gold ingot or gold coin. The date to be taken into account to calculate the TPV of 36.2%, is the date of the day of the deed of gift, and not that of the day of the purchase of the ingot.
If the parts are no longer under seal, the TPV cannot be applied, because there is no proof that they were purchased on the date indicated on the invoice, or on the deed of gift.
