Individual shareholders

If you wish to become a BNP Paribas shareholder and own part of its capital we invite you to buy at least one share.

Shareholders may hold BNP Paribas shares in two different ways: as "registered" shares or as "bearer" shares.

TYPES OF SHAREHOLDING

BEARER SHARES

Anyone buying shares in bearer form becomes a BNP Paribas shareholder. Shares held in bearer form are managed by the bank or by the financial institution chosen by the shareholder.

Shareholders holding BNP Paribas bearer shares can request the conversion of their shares into registered shares (pure or administered form).

REGISTERED SHARES

BNP Paribas Shareholders holding registered shares as at 31 December 2017 are 28,256.

Pure registered shares

Shareholders holding pure registered shares benefit from:

• possibility to receive all communication and information published by BNP Paribas to the attention of its shareholders;
• toll free number (France only): 0800 600 700 to transmit your stock exchange orders and for all information;
• preferential brokerage fees: 0.30% up to EUR 330,000.00 and 0.20% beyond (with a minimum of EUR 7.00) – pre-tax value;
• the use of the specific and secure “PlanetShares” website (https://planetshares.bnpparibas.com) allowing you to review the history of your transactions, consult the amount of your disposals and transmit orders(1). You can access the website from your tablet and smartphone;
• automatic receipt of notice of General Meeting of Shareholders, without establishing a participation certificate;
• invitation on the internet to the General Meeting of Shareholders (“e-convocation”);
• no custodial fees.

Holding pure registered shares in an equity savings plan (PEA) is not highly recommended due to the taxation applicable to this account. Shareholders whose BNP Paribas shares are held within a PEA can transfer them to a registered account and choose to hold them as administered registered shares.

Administered registered shares

BNP Paribas has also developed its shareholding offer of administered registered shares for its institutional shareholders. For those investors, this choice of shareholding combines the main advantages of both bearer and pure registered forms:

• the shares can be purchased and sold at any time through the shareholder’s usual broker;
• possibility of holding a single share account, linked to the cash account;
• systematic invitation to exercise the right of vote and participation to General Meetings of Shareholders, without any intermediaries;
• invitation to the General Meetings of Shareholders and to exercise the right of vote on the internet (“e-convocation”).

(1) subject to the subscription (free of charge) of a "contract for market benefits"

Payment of the dividend

The Annual Meeting, pursuant to the recommendation of the Board of Directors, set up the terms and conditions governing the payment of the dividend. The dividend may be paid in cash or with an option to receive payment in the form of additional shares. The option must be exercised, generally, within a period of three weeks after the cutting off of the coupon. The formalities are completed with the financial intermediaries authorized to pay the dividend.

Case of the dividend paid with additional shares

The new shares covered by this option bear interest from January 1st of the current year, and are issued at a price equal to at least 90% of the average of the first prices quoted during the twenty stock market sessions preceding the date of the Annual Meeting, less the amount of the dividend. In the event that the dividend due does not correspond to a round number of shares, the shareholder may choose to be paid a balancing cash adjustment or, alternatively, to pay a further amount allowing him to acquire an additional share.

(The indications below apply to dividends paid since 2018 (tax return filed in 2019 and tax due in 2019)1

Dividends paid to individuals French resident

Dividends received by French resident taxpayers are subject to a flat tax at the rate of 12.8%, plus the additional social security levy at the rate of 17.2%, i.e an overall taxation of 30%. The tax payable is the same regardless of whether the shareholder chooses to be paid in cash or in shares (where the Bank offers this option).

However, tax payers may opt for taxation at the progressive scale for income tax. This option is global and concerns all the taxpayer's income from investment income.  It is exercised when the tax return is filed.

In both cases, taxation is levied in two stages:

At the time of payment: a 12.8% advance income tax payment

When dividends are paid, an advance payment for income tax of 12.8% is deducted at source by the paying agent calculated on the gross amount of the dividends, as well as the additional social security levy at the rate of 17.2%. These deductions are mandatory.

The 12.8% deduction is not applicable if shares are held within an equity savings plan (PEE, PEA, PEA-PME).

Taxpayers whose taxable income is less than EUR 50,000 (in the case of single, divorced or widowed taxpayers) or EUR 75,000 (in the case of taxpayers taxed jointly as a household) may request an exemption from the 12.8% deduction.

An exemption request must be submitted, under the taxpayer's responsibility, no later than 30 November in the year preceding that of the dividend payment.

The year following the payment of dividends: final taxation

- Flat tax
The 12.8% initial deduction levied at the time of dividend payment becomes a definitive tax.

- Option for the taxation at the progressive scale of income tax
A 40% allowance on the gross dividend is then applicable. The 12.8% deduction operated by the paying agent is chargeable against the tax due on this basis.  Any excess is returned.

Dividends paid to non French residents

Dividends paid to individuals who do not reside in France are subject to a withholding tax at the 12.8% upper rate.

However, regardless of the beneficiary's place of residence, a 75% withholding tax is levied if dividends are paid in a non-cooperative state or territory.2

(1) Unlike salaries and wages, this income is not subject to withholding tax at source, which came into force on 1 January 2019

(2) 2018 list of NCST: (this list is updated on a yearly basis): Botswana, Brunei, Guatemala, Marshall Islands, Nauru, Niue and Panama.