The French are among the most keen on crypto in the world, and in recent years, the country has been taking more measures in terms of tax declaration. We are indeed talking, according to the Ministry of the Economy, of 14 million active users in Europe (including 1.5 to 5 million French people), and of a 1’ nbsp;100 billion dollars in 2023 compared to 18 billion in 2017.
The current regime, in force in France since January 1, 2019, requires crypto holders to declare their assets at the same time as their tax return. Exchanges between cryptocurrencies are not taxable. But any conversion into fiat currency (euros, dollars, pound sterling, etc.), or payment normally involves a declaration to Bercy. The rate and the calculation methods are the same – we are talking about a “flat tax” at 30%.
Few French people seem, for the moment, to correctly declare the cryptos they hold
It is also necessary to inform the authorities of the existence of Coinbase, Revolut and other Bitstamp crypto accounts via Cerfa form n°3916-bis. In a note based on a report from the Court of Auditors made public on December 19, 2023, the Ministry of the Economy notes that the tax provisions in this area are still little applied by the French.
The latter were in fact only 20,000 in 2021 to declare their capital gains when selling assets – allowing the State to recover 400 million euros. For the Court of Auditors, the “tax regime is unsuitable for the use of cryptoassets as means of payment”. And to recommend an increase in tax controls for digital assets.
But that's not all. According to BFMTV, the rapid technical evolution of the sector also threatens to provoke new adaptations of tax law. Staking, crypto-to-crypto exchanges… difficult for the administration and users to know which way to go. Pierre Morizot (co-founder of Waltio) believes that the spirit of the recommendations of the Court of Auditors is to draw inspiration from the rules in the traditional financial world and to strengthen the surveillance of this market .
There is a priori no question of taxing exchanges between traditional crypto, according to the manager. “An exception to this tax regime compared to other countries” d’Europe, he specifies. But it is nevertheless likely that exchanges towards stablecoins will become taxable. For the moment, the arbitrations which could lead to new tax rules targeting crypto are still being decided.
We should therefore learn more in the coming weeks about what awaits crypto holders in France.
- A report of the Court of Auditors published at the end of December 2023 lists some recommendations to better tax and control cryptocurrencies.
- Among these proposals, the possibility of taxing stablecoin exchanges is mentioned.
- Exchanges between crypto remain outside the framework for the moment, a priori.
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