In France, a **RSU** (Right to Shares Unit) is a type of employee benefit that gives the right to receive shares in a company after a certain period, known as "vesting." These shares are typically given for free, and they can lead to two types of financial gains: the acquisition gain, which is the value of the shares when they are finally received, and the capital gain, which is the profit made when the shares are sold. Whether these gains are taxed depends on whether the RSU plan is classified as "qualified" or "non-qualified." A qualified RSU plan must meet certain legal conditions outlined in the French Commercial Code, which places the acquisition gain under a specific tax regime in the General Tax Code. If the plan is qualified, the acquisition gain is generally taxed when the shares are sold, not when they are received. For plans authorized after January 1, 2018, the first 300,000 euros of gain is taxed at a reduced rate after a 50% discount, with social contributions. Amounts above that are taxed as salary and include a 10% salary contribution. Older plans follow different rules based on their authorization date. In contrast, a non-qualified plan treats the acquisition gain as a salary supplement, taxable from the year the shares are received, regardless of whether they are sold. Common mistakes include misclassifying a non-qualified plan as qualified, which can lead to incorrect tax reporting and possible recovery of taxes with penalties. Another frequent error is failing to report the acquisition gain on the employee's French payroll, which can result in tax and social contribution adjustments. Employees who work in multiple countries may mistakenly have their entire gain taxed in France, when it should be split based on the number of days worked in each country. These complexities are often increased by remote work or travel from other countries. RSUs are most commonly issued by large technology companies, particularly American and British ones, and the financial stakes involved are usually high. Payroll errors often occur when non-qualified plans are completely overlooked. On the employee’s side, the most common mistake is applying the rules for qualified plans to non-qualified ones. When a plan is qualified, different tax regimes may apply, and each allocation of shares must be analyzed individually. In cases where employees work in multiple countries, the gain is divided based on the time spent working in France, and additional complexity arises when remote work or travel is involved. French tax authorities typically request bank statements related to share sales and sometimes the RSU plan itself. They often have limited knowledge of these mechanisms, especially in international mobility cases, and a clear explanation is often needed. In one instance, a client who moved to Switzerland without informing French authorities had their Swiss stock options and RSUs taxed in France, but after providing a detailed and well-supported case, the tax was not applied to those shares. Before taking any action, a detailed, individual analysis is necessary. If RSUs were granted by a foreign company, the first step is to consult with a lawyer. Depending on the plan’s rules, the date of each share allocation, the employee’s career history, and how the employer handled the gains, the obligations and risks can vary significantly. In some cases, it may be necessary to obtain the plan’s regulations and, if applicable, its French sub-plan to determine if each allocation is qualified. It is also important to check how the gains were treated in payroll and declared, reconstruct the number of days spent in each country during the vesting period if mobility is involved, and assess whether past tax filings need correction.