Do you own gold jewelry and want to sell it or pass it on to your descendants? Find answers to all your questions about gold taxation: taxation on ownership, the sale and repurchase of gold, and inheritance. In all cases, Gemme Jewelers advises you on making the most advantageous choices.
Introduction to Gold Taxation
The tax rules for gold and precious objects apply to all forms of gold, whether physical gold, investment gold (bars, ingots, wafers weighing more than 1g), paper gold (stocks or shares in gold mining companies), gold coins dating from after 1800 (not collectible), and jewelry containing gold.
Only individuals residing in France are required to file gold declarations with the French tax authorities.
Furthermore, taxation includes other metals and objects:
• Platinum
• Money
• Works of art and antiques
• Precious stones
• Watches and jewelry worth more than €5,000, all materials combined
• Collectibles worth more than €5,000
Taxation on gold ownership
The appraisal of your 18-karat gold ring indicates that it is of high value, and you are worried about whether you need to declare it to the tax authorities as part of your assets?
There is no tax on gold ownership in France. The declaration of movable assets may mention the possession of gold or valuable jewelry, but this is only required in certain specific cases:
• Elected officials, leaders, and presidential candidates
• Divorce
• Donation or transfer of assets
• Social assistance applications
In all cases, gold ownership is not subject to taxation except in cases of transfer or export.
Taxation of the sale and purchase of gold
In France, the tax regulations governing gold apply to transfers. Professionals are already taxed via IR (income tax) or IS (corporate tax) for the sale of gold made as part of their business. On the other hand, individuals and professionals not subject to income tax or corporate tax must declare any sale of gold for consideration to the tax authorities.
This declaration must be made regardless of the method of sale: between individuals, at a gold dealer, or at an auction.
Gold sold is subject to the flat-rate tax on precious objects (TFOP) or the flat-rate tax on precious metals (TFMP).
When you sell without an intermediary, you must complete the declaration yourself within one month of the sale. If you sell your gold with the help of an intermediary (jeweler, broker), it is this intermediary who will complete the declaration.
Transfer and Inheritance
The transfer of gold as part of an inheritance is not subject to the flat-rate tax regime. However, as a security, physical gold is subject to inheritance tax.
The tax rate varies from 5% to 55% depending on the amount transferred and the relationship between the donor and the beneficiary.
The notary will calculate inheritance tax on the assets concerned.
If you choose to transfer gold or gold jewelry during your lifetime, the gift must also be declared, even if the donation is exempt from tax. Here again, the rates of gift tax depend on the relationship with the donor. The allowances and reductions are applicable for periods of 15 years.
What strategy should you use to minimize your gold tax?
In the case of a transfer, inheritance, or donation, several strategies can be considered to minimize gold tax.
• Transfer Strategy
In the case of a physical gold investment purchase, particularly through online sales, opting for the capital gains tax regime is often advantageous in the long term.
• Transfer Strategy: Donation and Inheritance
A tax declaration exemption is provided when the transfer is made destination of a public museum, a public library, or an archive.
In the private sphere, a distinction is also made between a gift and a customary gift, which is not subject to the inheritance tax regime and is therefore tax-exempt. The qualification of a customary gift requires that the jewelry be given preferably for a special occasion (birthday, Christmas, family event) and that its value be deemed modest in relation to the donor's wealth.
Whether it's to sell your gold at the best price, fulfill your tax obligations, or make the most advantageous decisions, estimating the value of the item is essential. Valuation is a prerequisite for any declaration. Gemme Jewelers offers you an expert appraisal of your 18-carat gold jewelry, in a dual approach of enhancing the value of gold and the art of jewelry.
