Handling crypto taxes in France can feel like navigating a maze. The regulations are only sometimes clear, and the fear of making mistakes can be stressful. Many crypto investors in France ask, “How do I report my crypto gains?” or “What tax rate applies to my crypto holdings?”
Like many European countries, France has established specific rules for taxing cryptocurrencies. The General Directorate of Public Finances, or Direction Générale des Finances Publiques (DGFiP), classifies crypto assets under the Income Tax Regime. This means that your crypto activities—buying, selling, or swapping—can have tax implications that you must understand.
This guide will explain the essential details of France’s crypto tax rules, including how crypto is classified, how it’s taxed, and what steps you need to take to report your crypto assets correctly.
Do I Have To Pay Tax On Crypto In France?
Yes, you have to pay crypto taxes in France. The Direction Générale des Finances Publiques (DGFiP) leaves no room for doubt. Crypto falls under the category of moveable assets, making any capital gains from the disposal of cryptocurrency taxable as Capital Gains Tax in France.
If you’re into crypto mining, brace yourself because those rewards are considered non-commercial profits or Bénéfices non Commerciaux (BNC), which means they’re fair game for Income Tax.
How Much Tax Do I Pay On Crypto In France?
The total amount of tax calculated on your cryptocurrency depends on the following three things:
- If you are an occasional trader, you pay a flat tax at a rate of 30%
- If you are a professional trader, you pay tax under the BIC tax regime between 0-45%
- If you are a crypto miner, you fall under the BNC tax regime between 0-45%.
However, if your mining operation is more minor and makes less than €77,700 in 2023, you might qualify for a lower tax rate called micro-BNC.
Can DGFiP Track My Crypto?
Yes, DGFiP can track your cryptocurrency transactions.
Some assume that cryptocurrency trading is anonymous, but authorities can track users of these digital assets.
Under the European Union’s Sixth Anti-Money Laundering Directive, financial service providers dealing with cryptocurrencies must adhere to stricter rules regarding customer identification.
This includes sharing data among EU member states to combat money laundering and illicit activities.
A new EU directive, Dac8, is expected to take effect later this year. This directive could grant DGFiP (France’s tax authority) the power to verify crypto ownership and scrutinise crypto companies’ accounts for insights into crypto assets.
And if you’re considering not reporting your crypto taxes to DGFiP, it’s essential to understand the potential consequences.
Tax evasion in France can lead to severe penalties, including fines of up to €500,000, imprisonment for up to 5 years, and a penalty of up to 80% of the tax owed.
These are not just empty threats but real risks that individuals and companies in cryptocurrency need to take seriously.
Is There Any Crypto Transaction That Is Tax-Free In France?
Before getting into the nitty gritty of crypto taxes in France, let’s discuss the good news: not all crypto transactions are taxable. In France, the tax office takes a liberal view on what constitutes a taxable transaction.
According to the DGFiP, converting your crypto to cash is taxable, but you won’t be taxed on crypto-to-crypto trades. Tax-free transactions include:
- Trading one cryptocurrency for another, including NFTs, stablecoins, and tokens for crypto, and vice versa.
- Buying crypto with EUR or another fiat currency.
- Holding crypto.
- Transferring crypto from one wallet to another.
Capital Gains Tax in France is levied on disposing of crypto (selling it for fiat currency), but up to €305 a year is tax-free.
How Is Crypto Taxed In France?
In France, cryptocurrency is considered movable property or an asset, except for mining rewards, which is taxed as Business Non-Commercial or Bénéfices non Commerciaux (BNC) income.
You’ll owe Income Tax (impôt sur les revenus) on any profit when you sell your cryptocurrency for cash, such as euros or another fiat currency. According to the DGFiP, this is the only transaction they consider a disposal for tax purposes.
However, it depends on how the department views you as an investor. In France, you can be an occasional trader or a professional investor. As per the new guidelines released in January 2023, most investors will be considered occasional traders, but let’s uncover both categories for greater understanding.
How Are Occasional Traders Taxed In France?
Occasional traders must pay a tax called PFU (Prélèvement Forfaitaire Unique). It’s levied at a flat rate of 30%. It applies to money made from investments like crypto, dividends, and stocks. This tax is applied when you make a gain from disposing of your crypto tokens.
Unlike a tax that increases as you earn more, this one stays the same no matter how much you make in a year. It’s 12.8% for regular income tax and 17.2% for social security.
Under the new rules, you can choose not to pay the 12.8% tax when you do your taxes each year. Instead, you can go for a tax that changes based on how much you make from your investments.
The process is straightforward for low-income individuals (less than €10,777 for singles). You might only have to pay 17.2% for social security. If you earn between €10,778 and €27,478, you can quickly lower your tax rate to 27.45% by checking box 20P on Form N°2042 when you file your taxes.
Additionally, out of the 9.2% CSG (Generalised Social Contribution) you pay, 6.8% can be subtracted from your investment income, including capital gains from cryptocurrency.
How Are Professional Traders Taxed In France?
Formerly, professional traders considered the profits commercial gains or BIC (Bénéfices Industriels et Commerciaux).
But now, the conditions are different with the latest guidance. There are two significant changes.
- First, not all investors will be considered professional investors. The categorisation depends on case-to-case basis.
- Second, for those still classified as professionals, their profits won’t be treated as commercial profit tax anymore.
Instead, they’ll be seen as non-commercial profits or BNC (Bénéfices non-Commerciaux), which means they’ll be subject to non-commercial profits tax.
The BNC tax system is designed for self-employed professionals, including those involved in professional trading under the new guidelines, who engage in non-commercial activities. Under this system, profits are still subject to regular Income Tax rates.
However, the calculation method differs: you’re taxed on your net profits, which are determined by subtracting your expenses from your total revenue.
A special provision called the micro-BNC scheme was introduced in 2023 for investors with turnover below €77,700, which offers a tax credit of 34% of turnover.
As a result, you’ll only pay progressive tax rates ranging from 0% to 45% (based on 2023 Income Tax rates) on 66% of your income, depending on your turnover.
Occasional Traders Vs. Professional Traders
Now that you’ve understood how occasional and professional traders are taxed in France let’s determine which category you fall into.
Previously, it depended on how much money you were trading; however, the latest guidelines that came into effect in January 2023 changed the scenario of categorisation.
Categorisation Based On Old Rule
Before the recent reform, the DGFiP (Direction Générale des Finances Publiques) pointed out a crucial difference based on your trading frequency.
If you were frequently involved in crypto trading, affectionately referred to as “degens,” you might have been seen as a professional trader under the old rules. Consequently, you’d be subject to the progressive commercial profit (BIC) tax, which ranged from 0% to 45%.
On the other hand, if you leaned more towards holding onto your assets for the long term and only occasionally made trades, you were likely categorised as an occasional trader. In this case, you would’ve paid a flat rate of 30% called the PFU (Prélèvement Forfaitaire Unique) tax instead.
The DGFiP made decisions on a case-by-case basis, considering the total investment amount, trade volume, and frequency of crypto sales.
Categorisation Based On New Rule
Significant changes have occurred due to tax reform since January 2023. Now, the frequency or volume of your crypto trading won’t determine whether you’re considered a professional or occasional trader.
Under the new guidelines, if you are selling crypto to manage your assets (which applies to most investors), you’ll be subject to the PFU, regardless of how many transactions you make or the total amount involved.
Investors who conduct crypto transactions on a daily basis will be considered professionals. This means engaging in numerous sophisticated transactions using advanced trading tools and techniques.
Additionally, under the new reform, capital gains from crypto for professional traders will be taxed as non-commercial profits (BNC), similar to how crypto mining rewards are taxed.
PFU Tax Rates
The PFU tax rate in France consists of two fixed rates: Social Security Contribution and Income Tax. The tax rates are as follows:
Prélèvement Forfaitaire Unique (PFU) | Tax Rate |
Social Security Contribution | 17.2% |
Income Tax | 12.8% |
Total Tax | 30% |
With the new guidance, investors can waive the fixed 12.8% Income Tax each year and use the progressive Income Tax rates instead. While this change may not be advantageous for most investors, it mainly benefits individuals with low incomes falling within or below the 11% tax bracket. Below are the Income Tax rates applicable to single taxpayers.
Income Tax Rates
Occasional traders also have the option to choose the progressive income tax rates for PFU tax based on their gains.
However, the BNC tax regime applies to professional traders and those earning crypto mining rewards tied to income tax rates.
For the financial year of 2023, which you’ll be reporting on in 2024, the Income Tax rates are as follows:
Income Bracket | Tax Rates |
Up to €10,777 | 0% |
€10,778 – €27,478 | 11% |
€27,479 – €78,570 | 30% |
€78,571 – €168,994 | 41% |
Above €168,994 | 45% |
For investors currently facing an 11% tax rate, choosing to forego the 12.8% tax rate would lower their crypto tax rate to 27.45% (excluding CSG).
The micro-BNC tax system is an essential consideration for those utilising the BNC tax system. This applies to most investors, including crypto miners and professional traders, with annual turnovers of less than €77,700 for 2023.
While the micro-BNC tax system can be intricate, it determines your taxable profit by subtracting a 34% tax-free allowance from your annual turnover.
This means only 66% of your profits are subject to taxation, which is then taxed according to the progressive Income Tax brackets.
How To Calculate Crypto Gains And Losses
Calculating your gains and losses is essential to determining your tax liability. This involves knowing your cost basis, which refers to the total cost of acquiring an asset and any allowable fees, such as purchase fees.
Knowing your cost basis helps you calculate capital gains or losses for tax purposes. Once you have determined the cost basis, subtract it from the sale price to calculate the gain or loss.
If you have enjoyed a gain, this will be treated as capital gain, subjecting to PFU at 30% (or less if you waive the 12.8% in favour of a lower rate).
While losses may not be ideal, they can work in your favour regarding your tax bill. Capital losses can be beneficial, providing a silver lining to your financial situation.
Crypto Losses
When you invest in crypto, sometimes you make money (capital gains), and sometimes you lose money (capital losses). The good news is that when you calculate your taxes, you can use your losses to reduce the tax you owe on your gains. However, there are rules about how you can do this.
For instance, if you lost money on crypto investments this year, you can only use those losses to offset any gains you made in the same year. You can’t save these losses for next year’s taxes like you might with other investments. French tax authorities, DGFiP, are strict about this rule.
Cost Basis Method
The DGFiP has a specific method called the ‘plus values de cessions d’actifs numériques‘ formula, or PVCT method, that you must follow. This method helps you determine the cost basis when selling a crypto asset. Here’s how it works:
- Calculate the fraction of the acquisition cost of your entire crypto portfolio (all the crypto you own) compared to the sales proceeds.
- Divide this fraction by the total value of your portfolio.
It might sound complex, but here’s a simplified explanation of the “plus values de cessions d’actifs numériques” formula:
To calculate your taxable gains when selling a crypto asset in France, you use this formula:
Taxable Gains = Sale Price – (Total Acquisition Costs x [Sale Price / Total Portfolio Value])
Here’s what each part means:
- Sale Price: The amount you received when you sold a crypto asset.
- Total Acquisition Costs: The total cost (in euros) to buy your crypto, including any allowed fees.
- Total Portfolio Value: The total value (in euros) of all your crypto assets.
By plugging these values into the formula, you can determine your taxable gains from selling crypto assets.
Example:
Let’s say you purchased 2 LTC (Liteusing) for €3,000. This is your acquisition cost.
Later, you decide to sell your 2 LTC for €4,500. This represents your sale price.
Your crypto portfolio contains other assets; its total value is €25,000, including the mentioned LTC.
Now, let’s apply the same calculation:
- Now, let’s break down the calculation. First, divide the sale price by your overall portfolio value: €4,500 / €25,000 = 0.18. This is a crucial step in determining your gain.
- Next, multiply your acquisition price by 0.18: €3,000 * 0.18 = €540.
- Now, subtract your calculated figure from your sale price: €4,500 – €540 = €3,960. This becomes your cost basis.
- And there you have it! The result of our calculation shows that your overall gain from selling your LTC would be €960 (€4,500 – €3,960). This is the amount you’ve earned from your investment.
If the above calculation is too much for you, you can always sign up on KoinX. At KoinX, the platform automatically determines your taxes based on the nature of the transactions.
How Specific Crypto Transactions Are Taxed?
The DGFiP has a precise but nuanced approach to crypto taxes in France. Understanding how specific transactions are taxed depends on two key factors: your activity level and the type of transaction.
Types Of Transaction | Taxation |
Buying Crypto With Fiat Currencies | Tax-Free |
Selling Crypto | Prélèvement Forfaitaire Unique (PFU) |
Pay Trading Fees With Crypto | Prélèvement Forfaitaire Unique (PFU) |
Exchange Crypto For Crypto | Tax-Free |
Initial Coin Offerings | Tax-Free |
Transfer Of Crypto Between Wallets | Tax-Free |
Airdrops | Tax-Free |
Forks | Tax-Free |
Crypto Income | Bénéfices non Commerciaux (BNC) |
Staking Rewards | Tax-Free |
Mining Rewards | Bénéfices non Commerciaux (BNC) |
Gifting Cryptocurrency | Tax-Free |
Receiving Crypto As Gifts | Tax-Free |
Donating Crypto | Tax-Free |
Purchase Goods With Crypto | Prélèvement Forfaitaire Unique (PFU) |
Buying NFT with Crypto | Tax-Free |
Buying NFTs with Fiat | Tax-Free |
Lending Crypto | Bénéfices non Commerciaux (BNC) |
Profit Margin | Tax-Free |
Margin Loss | Tax-Free |
Lost & Stolen Crypto | Tax-Free |
Here is a detailed breakdown of crypto taxes in France functions:
Buying Crypto With EUR
French investors can buy crypto using euros or another fiat currency without worrying about taxes. However, it’s essential to maintain detailed records of your acquisition costs. Following the PFU cost basis method helps ensure the accurate calculation of crypto gains and losses later.
Trading Crypto For Crypto
In France, cryptocurrency investors are exempt from taxes when they trade one cryptocurrency for another. The only time the DGFiP is concerned is when you exchange cryptocurrency for fiat currency.
This means that trading cryptocurrency for other cryptocurrencies, NFTs, tokens, stablecoins, and other digital assets does not incur a tax liability.
Transferring Crypto Between Your Wallets
Transferring cryptocurrency between wallets is not a taxable event, whether between wallets or exchanges.
You don’t have to pay taxes as long as you’re not disposing of your crypto. The DGFiP still needs to provide specific guidance on transfer fees.
However, these fees are unlikely to be considered disposals or subject to taxes, as you’re not converting your cryptocurrency into fiat currency.
Holding Crypto
Great news for those firmly committed to holding onto their cryptocurrencies: No taxes are applicable in France for holding crypto. So, if you have diamond hands, you can hold onto your crypto without worrying about paying taxes.
Selling Crypto for Fiat
Remember that your profits may be taxable if you sell your crypto for fiat currencies. In most cases, occasional traders are required to pay a 30% PFU tax on the gains they have earned.
Crypto Mining
As an individual involved in mining, any proceeds earned from this activity are considered passive income from a hobby, per Article 92 of the General Tax Code. You must declare and pay Income Tax on all mining earnings. Additionally, please note that profits made from mining are subject to a BNC tax rate of 45%.
Spending Crypto
When you use your cryptocurrency to make a purchase, you convert it into a particular fiat currency based on its fair market value on that specific day. This applies to most debit and credit cards that deal in cryptocurrencies.
However, it is essential to note that any profit from spending your cryptocurrency in France may be subject to a 30% PFU tax.
ICOs and IEOs
Initial Coin Offerings (ICO) and Initial Exchange Offerings (IEO) are similar to Initial Public Offerings (IPO). In an ICO or IEO, companies receive crowdfunding from investors in exchange for an investable token (security token) or future access to a product or service (utility token).
From the French tax perspective, ICOs and IEOs are not considered taxable. However, if investors dispose of these crypto assets in exchange for cash payments at a later date and make a capital gain, PFU rules will apply.
Airdrops and Forks
Airdrops, master node rewards, hard forks, bounties, and lending are all various ways of receiving crypto assets, which can be considered “deposits.”
Inflows of such investments for investors who engage in these activities sporadically or infrequently; receiving these assets may not be subject to immediate taxation.
However, when these crypto assets are eventually sold for fiat currency, they become taxable events and are subject to capital gains taxes.
It is essential to keep track of these transactions and their corresponding values for tax reporting purposes.
Staking Rewards
Receiving staking rewards does not incur taxes by itself. Taxes are only applicable when you convert your staking rewards into fiat money.
However, sending your cryptocurrency to DeFi platforms for staking can impact your portfolio value because the coins you send for staking will no longer be in your wallet.
If you decide to sell your cryptocurrency while staking on a DeFi platform, you must use the total value of your portfolio for calculations.
Futures and Derivatives Profit
Earnings from cryptocurrency derivatives are taxable only when they are converted to fiat currency. The received cryptocurrency will not contribute to your acquisition cost, but it will contribute to your portfolio value.
Gifts and Donations
You won’t have to pay capital gains tax if you send cryptocurrency as a gift. However, you may have to pay a gift tax. Donating cryptocurrency is also not taxable, but it can reduce the value of your portfolio. Tax deductions may be available for donations made to qualifying organisations.
DeFi Tax
The DGFiP has not provided any guidance on the tax implications of DeFi transactions. According to the current guidance, the DGFiP only considers disposal as selling your crypto for fiat currency.
Therefore, many DeFi transactions may be tax-exempt, such as trading capital for liquidity pool tokens.
However, without explicit guidance, it is recommended that you seek the advice of a professional tax expert to understand your unique situation.
Tax on NFTs
In France, the government does not tax the sale of NFTs as long as they are not exchanged for fiat currency. This means there is no tax liability if the transaction uses only cryptocurrencies or other digital assets.
However, the transaction becomes taxable if the NFT is sold for fiat currency. The tax regulations for NFT transactions fall under the income tax rule, which is precisely income through capital gains.
Therefore, it’s essential to understand that any profit derived from the sale of an NFT is subject to income from capital gains. This rule underscores the importance of accurately calculating and reporting NFT transactions for tax purposes.
How To Reduce Your Crypto Tax Bill?
You can legally reduce your crypto taxes in France by adopting a strategic approach, but outrightly avoiding them can result in severe penalties, fines, and even imprisonment. Here are some techniques to reduce your crypto taxes:
Track And Harvest Losses
Using a crypto portfolio tracker, such as KoinX, can provide an overview of the performance of your cryptocurrency portfolio and holdings at both a macro and micro level.
By doing so, you can identify unrealised losses, which refers to crypto that has decreased in value since its acquisition. You can then use this information to offset any gains by harvesting these losses.
Optimising your losses in France is essential, as you cannot carry them over to future financial years.
Therefore, the timing of loss harvesting can significantly impact your tax bill, and it’s an immediate concern for cryptocurrency investors.
Take Advantage Of Lower Tax Bands
If you belong to the 11% Income Tax band or lower, you can waive the 12.8% tax as part of PFU. Instead, you can be taxed using the progressive Income Tax bands. This may reduce your PFU tax rate to 28.2% or even lower.
Cash Out To Stablecoins Instead Of Fiat
According to DGFiP, disposal of cryptocurrency is only considered when you exchange it for a fiat currency such as euros. This means that any gains made before this point are not taxable. Therefore, you can trade your cryptocurrency for stablecoins without taxing to cash out your gains while the crypto price is high.
How To File Your Crypto Taxes Easily?
Cryptocurrencies are gaining traction in France, but tax time can be confusing. Fear not, crypto enthusiasts! Here’s a breakdown of filing your crypto taxes in France smoothly.
When Do I Need To Report Crypto Taxes In France?
You must know some important dates when reporting crypto taxes in France as part of your annual tax return (impôt sur le revenu). All French residents are now required to report their taxes online.
However, paper declarations are still allowed for taxpayers in specific circumstances:
- Living in an area with limited internet access (white zone).
- They need internet access at their primary residence.
- Not being familiar with internet usage, even if access is available.
- Filing their first income tax return without receiving their identification details from the tax authorities.
Return Filing Dates:
You must report the transactions made during this period in your tax return. Below are the deadlines as per the regions:
Department | Tax Return Deadline |
Declaration using Paper | 21 May |
Zone 1 (Départements 1 to 19 and non-residents) | 23rd May |
Zone 2 (Départements 20 to 54 | 30th May |
Zone 3 (Départements 55 to 976) | 06th June |
How Do I Report Crypto Taxes In France?
Reporting your crypto taxes in France has become mandatory, and the easiest way to do so is to use your FranceConnect account online.
However, if you cannot report online, you must submit a paper declaration instead. You can access the necessary forms either online or on paper.
Depending on your transactions, you may need to complete several forms to report your crypto to the DGFiP.
Formulaire (Form) 2042
Formulaire 2042 is the primary tax return form that French taxpayers must complete to report their income. This form requires taxpayers to declare their income, earnings, and profits.
It is mandatory for all taxpayers, regardless of their marital status or income level. If you’re a single taxpayer, you can file this form yourself.
However, you can file jointly with your spouse if you’re married. This form is an essential document that helps the French government assess the tax liability of its citizens and residents.
Formulaire (Form) 2042 C
If you have earned income from mining or any other activity considered non-commercial or Bénéfices non Commerciaux (BNC), then you must complete Form 2042 C.
Formulaire (Form) 2086
If you have sold cryptocurrency for fiat currency, you may be required to declare any gains or losses you have incurred on your income tax return. This is done by filling out the Formulaire 2086, attached to Form 2042.
The purpose of this form is to provide a detailed account of your capital gains and income transactions related to cryptocurrency sales. By accurately reporting this information, you can ensure you comply with tax laws and regulations.
Formulaire (Form) 3916-BIS
Formulaire 3916-BIS, a mandatory declaration form, requires you to disclose any cryptocurrency accounts opened outside of France. Please provide accurate and complete information about these accounts to avoid any potential legal or financial complications.
An important note is that Form 2086 only allows for 20 itemised disposals. If you have more than 20 disposals, you can consult with KoinX’s crypto tax accountants for advice, regardless of whether it is crypto.
What Records Do I Need To Keep?
Like many tax authorities globally, France requires its residents to maintain thorough records of their cryptocurrency transactions for up to five years. To comply, it’s essential to keep track of:
- Dates of cryptocurrency transactions.
- The Euro value of the cryptocurrency at the time of each transaction.
- Details regarding the nature of the transaction and the parties involved.
To make this process easier, consider using KoinX. By linking your wallets and exchanges to your KoinX account, you gain access to a centralised dashboard. From there, you can conveniently record and monitor all your crypto activities.
How To Calculate And File Your Crypto Taxes With KoinX?
Tax season can be stressful for many crypto investors in France. With the ever-changing landscape of cryptocurrency regulations, keeping track of your transactions and calculating your capital gains and losses can feel like an uphill task. But fear not, for there’s a solution to make this process a breeze-KoinX, your trusted crypto tax software.
KoinX is not just a cryptocurrency tax calculator; it’s your personal assistant for simplifying the complex task of filing your crypto taxes in France.
With KoinX, you can effortlessly import all your crypto transactions from various exchanges and wallets, categorise them, and generate comprehensive tax reports.
Why Choose KoinX?
There are several benefits to using KoinX for your crypto tax calculations:
- Saves Time and Effort: KoinX automates the importation of your transactions and the calculation of your capital gains and losses. This can save you significant time and effort compared to manually tracking your transactions and calculating your taxes.
- Supports Multiple Exchanges and Wallets: The platform integrates with many cryptocurrency exchanges and wallets, making it easy to import all your transactions in one place.
- Accurate Calculations: KoinX uses industry-standard accounting methods to calculate your crypto taxes accurately.
- Tax Reports: It generates tax reports that you can easily share with your tax advisor or accountant.
- Security: KoinX takes the security of your data seriously. Your data is encrypted and stored securely in the cloud.
How To Generate Crypto Tax Reports With KoinX?
Here’s a step-by-step guide on how to calculate and file your crypto taxes with KoinX:
- Create a KoinX Account: Sign up for a free KoinX account.
- Import Your Transactions: Integrate your cryptocurrency exchanges and wallets . KoinX will automatically import all your transactions.
- Review Your Transactions: Once imported, you can review your transactions for accuracy and categorise them (e.g., buy, sell, trade, etc.).
- Generate Tax Reports: KoinX generates tax reports that you can download and share with your tax advisor or accountant.
- File Your Taxes: Use the tax reports generated by KoinX to file your crypto taxes.
KoinX is a valuable tool for anyone who invests in cryptocurrency. It can save you time and effort calculating your crypto taxes and ensuring they are filed accurately. So what’s the delay? Sign up on KoinX today and make your crypto taxes in France easier than before.
Conclusion
Now you’ve got the lowdown on crypto taxes in France for 2024! Remember, this knowledge is your golden ticket to a stress-free tax season. You’ll be a crypto tax champion in no time by staying on top of your crypto transactions, keeping precise records, and understanding the applicable tax rates and reporting requirements.
Moreover, do you want crypto taxes to avoid adding unnecessary stress to your life? You can use KoinX, a user-friendly crypto tax platform, to streamline the process for French residents. It automatically syncs with your crypto exchanges and wallets, calculates capital gains and losses, and generates tax reports compliant with French regulations.
More Tax Guides
Frequently Asked Questions
What Happens If I Don’t Pay Crypto Taxes in France?
If you do not report your capital gains from cryptocurrency, you will be fined 750€ for each unreported account or 125€ for omission or inaccuracy, up to a maximum of 10,000€ per declaration.
If the value of the accounts exceeds 50,000€ at any time during the year, these amounts of 750€ and 125€ respectively increase to 1,500€ and 250€.
When Should You Report Crypto Gains in France?
France views cryptocurrency as a movable asset and taxes it for capital gains. So, when you sell any crypto asset for a gain, you must report it to the DGFiP through your annual tax return. This crypto gain will be taxed at a flat rate of 30%,
Do Crypto Exchanges In France Share Your Crypto Transactions With DGFiP?
The answer is – likely yes. France takes Anti-Money Laundering (AML) and crypto taxation seriously. Exchanges registered in France, or those serving French residents, must comply with AML/CFT regulations. This includes reporting user data and transaction details to the DGFiP.
While the specifics may vary by exchange, they likely share information like your name, address, and transaction history (amounts, dates, types). This helps the DGFiP track cryptocurrency activity and ensure proper tax compliance.
