The tax filing campaign for 2022 began on April 7.
Cryptocurrencies are considered since 2019 as digital assets.
As such, cryptocurrency wallets must be declared to the tax authorities.
The simple holding of cryptocurrency is not subject to tax.
On the other hand, if financial gains from capital gains from the sale of crypto-assets have been made thanks to these portfolios and converted into euros, they must be declared because they are eligible for tax if they exceed 305 euros.
Since this year, income from cryptocurrency mining also attracts the payment of tax.
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How to report your digital asset portfolios
Crypto-assets are held via digital wallets managed by companies such as Coinbase, Binance, Ledger and eToro.
If the company hosting your wallets is domiciled in France, you do not have to declare the assets they contain.
In this case, the French tax authorities will be able to access the identity of portfolio owners directly from the platform and pre-fill your declaration.
In the case of assets held on a foreign platform, you will need to complete a digital asset account declaration via form n°3916.
One copy of the form must be completed for each wallet in your possession.
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As Erik de Meezemaker, wealth management adviser, reminds us, "
declaration of accounts does not mean taxation
".
If the assets contained in these accounts have not been transferred and have not given rise to a financial gain, they are not subject to tax.
For example, it is possible to exchange cryptocurrencies between them without being taxed, provided that you do not convert your assets into euros or any other fiduciary currency.
“
Declaring your assets is a different thing from selling your assets to make a capital gain
,” summarizes Erik de Meezemaker.
How to report gains from disposal of digital assets
On the other hand, when a value in cryptocurrency is converted into fiat currency, such as the euro for example, the General Tax Code (CGI) recognizes a financial capital gain which falls under income tax. .
The CGI provides that income from the sale of cryptocurrency, if it exceeds 305 euros over the year, is subject to the single flat-rate levy (PFU).
They are therefore taxed at 12.8%, ie at an overall rate of 30% by adding social security contributions.
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The amount of these assets must therefore be included in the income tax declaration in the category of digital assets, in boxes 3AN and 3BN of main form no. 2042. Annex no. 2086 must also be completed, bringing together information on all disposals and acquisitions of assets to enable the tax authorities to calculate the final capital gain.
How to report earnings from cryptocurrency mining
New this year is the financial gains from mining cryptocurrency assets.
Mining a cryptocurrency consists of verifying the validity of transactions made with this cryptocurrency.
Individuals with a computer with sufficient computing power can try it.
In exchange for this task performed, they receive compensation in cryptocurrency.
Again, if this value is converted into fiat currency, it becomes taxable.
Since this year, the CGI stipulates that mining is assimilated to non-commercial profits (BNC), in the same way as income from the liberal professions, for example.
Mining income is then declared by the same process as any other BNC, i.e. on the main form n° 2042.
In the event of breach of reporting obligations, the CGI provides for a fine of up to 1,500 euros.
A failure or an error in the declaration which would not be corrected within thirty days can lead to a tax increase of up to 40%.
In the case of a fraudulent maneuver aimed at deceiving the tax administration, the increase in the sums due can go up to 80%.
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