what changes for your cryptocurrencies

Since April 7 (despite a few small computer bugs at the start), it has been possible to declare your 2022 taxes and in particular your cryptocurrencies, which more and more French people hold among their assets.

From one year to the next, declaring your cryptocurrencies changes as the decentralized finance community is in upheaval. To help you, we are going to review the main documents and the best reflexes to have for declaring your cryptocurrencies for taxes in 2022.

As you will see, the major changes in the declarations are provided for by amendments which will take effect next year. But some advice will certainly be useful for you to know this year so as not to forget important points, risk a fine, or simply waste time.

Cryptocurrencies and taxes: how does it work?

As in 2021, are taxed with cryptocurrencies all capital gains greater than 305 euros and exchanged in fiat currency (Euro, Dollar, etc.). In other words, if you bought and then resold bitcoins, ethers or other crypto, realizing a capital gain, then you converted these funds into fiat currency, then you will be taxed.

If you keep your capital gain in a digital asset, such as a stablecoin, the French authorities will not ask you for anything. If you have purchased a physical good with your cryptocurrencies and that these relate to a capital gain, then you will be taxed when reselling this good. Example: buy a car with funds earned from your Bitcoin investments, then resell that car.

Taxed funds are subject to a flat tax of 30% (lump sum tax) including 17.2% social security contributions and 12.8% tax. From 2023, capital gains from the sale of cryptocurrencies will continue to be taxed by default on this lump sum tax. But it will be possible to submit to a more progressive scale if the option proves to be more advantageous. For the time being, we must stick to the single flat-rate levy.

๐Ÿ‘‰๐Ÿผ Declaring your crypto-currencies means being taxed on the capital gains generated during the purchase and resale of digital assets.

๐Ÿ‘‰๐Ÿผ Get taxed on your crypto-currencies, it is to have necessarily made gainsand have exchanged these in national currencies (like the Euro).

๐Ÿ‘‰๐Ÿผ This capital gain on the purchase and sale of crypto-currencies is subject to a flat tax of 30% during the 2022 tax declaration.

๐Ÿ‘‰๐Ÿผ Note: if the amount of your capital gain does not exceed 305 euros when converted into euros (or foreign currencies), you will not be taxed when declaring your cryptocurrencies.

Record all transactions

Whether or not you have made an overall capital gain on your transactions for the year 2021, you must in any case record all of your tax transactions. Any purchase of crypto into fiat currency and any sale of crypto into fiat currency must be noted. Depending on how you use cryptocurrencies and your pace of purchase, you will therefore have more or fewer transactions to record.

To register them, download the Cerfa 2086 form. By registering all the transactions, if you go through the electronic declaration, the final amount in capital gain or loss will be automatically registered on the main document of your declaration of income taxes 2022: form 2042 (a time saver).

Important point, do not forget to fill in all of your foreign accounts (if you go through platforms like Coinbase, Revolut, Binance, ZenGo, etc.). The French tax authorities order it and the fines are hefty in the event of non-compliance. We explain everything to you in a special article on the importance of declaring our foreign accounts for 2022 taxes.

Important points in 2022

While waiting for the end of the single flat-rate levy, which does not take into account everyone’s profile, the taxation of cryptocurrencies is working on other activities related to cryptocurrencies and which are becoming more and more popular with more and more individuals. We are thinking of NFTs, passive income (staking or lending) and business operations (such as crypto donations).

For NFTs, a legal vagueness is still very present as the use of these tokens is multiple and they can both enter the class of works of art, digital assets and other movable property. If you have made gains of several thousand euros, it is advisable to call on a tax lawyer. But up to 5000 euros of gain, you can obtain a tax exemption. If the buying and selling is done in crypto, you won’t be taxed anyway.

For the remuneration received if you lend your cryptocurrencies on platforms (โ€œlendingโ€ corresponds to investments on centralized platforms and โ€œstakingโ€ on decentralized platforms), the taxation will be different. Income in tokens made on decentralized platforms like Uniswap does not incur taxation. But the lending, on centralized platforms like Binance, is up to 30%. This income should then be entered in box 2TR of the main form (2042).

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