Taxes on cryptos: how to complete your return in 2023?

Spring brings good weather, allergies and also taxes. This immutable rule of nature, however unpleasant, is a must for everyone. If you have an account with a neobank, you have sold clothes on Vinted, you have rented your apartment on Airbnb or you own cryptocurrencies, this also concerns you. Here are all the steps you need to follow to declare your digital assets to the tax authorities.

Bitcoin, Ethereum: What tax for crypto currencies?

Since 2018, capital gains on digital assets in France were taxed under a flat tax. But a lot of things will change in 2023, even though cryptocurrencies will continue to be subject to taxes. I’Article 79 of the Finance Act 2022 amended the tax regime applicable to crypto-currencies and came into effect on January 1, 2023.

Over there flat tax about the exchange of cryptocurrencies

It is therefore no longer the same actions that you have to perform, and the flat tax crypto as we knew it is disappearing. However, digital asset owners, individuals and professionals, remain taxable – there’s no escaping it flat taxnor to the new version of taxes.

There are now several tax options for declaring cryptos and some users can choose a progressive scale. ” Transfers on a non-professional basis will systematically fall under the uniform fixed deduction regime “, However, ” taxpayers can choose to be taxed at either the flat rate of 12.8% or the progressive rate of income tax », Specifies the Ministry of Economic Affairs. .

Do you have to declare your crypto account to the tax authorities?

Not only are your crypto currencies taxable, but in most cases you must also declare your accounts on crypto purchasing and exchange platforms. In fact, “ like bank accounts, neobanks or life insurance companies, crypto accounts opened abroad must be brought to the attention of the tax authorities, even if no deposit has been made or if they have been closed », summarizes RTL.

As Binance is a foreign entity, you must therefore declare your account to the tax authorities. The same goes for other platforms, such as Kraken, Coinbase, Bitpanda, Crypto.com, etc. As for Coinhouse, you don’t have to: the company is French and it is registered as a PSAN with the financial markets authority – the tax authorities will find your accounts themselves on the platform.

How do you declare your Binance account or on another crypto platform to the tax authorities?

To declare your accounts, you must follow the same steps as when you declare a bank account in a neobank. You will find all the information about the procedure in our article on the subject, as well as a brief summary below.

To declare your account on a cryptocurrency exchange platform, you must have the form no. 3916. You will also have to enter several details: your identity, your account number, its nature (professional or personal), the creation date, the name and official designation of the platform and the address of the exchange platform.

How to find the address of Binance and crypto platforms?

As with neobanks, information on crypto exchanges is sometimes hard to find. For a long time, Binance boasted that it had no headquarters in order to remain free.” like bitcoin “. For the other platforms, which are sometimes located in tax havens, it is just as difficult to get hold of this information. Fortunately, the Coin Academy site has collected most of the addresses of the platforms: all you have to do is enter the to find yours the (long) list on the special page.

How can you declare your crypto currencies to taxes?

How are retail cryptocurrencies taxed?

A quick reminder about crypto-currency taxation to get you started: only capital gains of more than 305 euros are taxable, only if you have converted your cryptos into fiat currency (e.g. euros), or into purchases of goods and services. If you’ve converted your Bitcoin capital gains into Ethereum, without ever going through the euro box, don’t worry.

To file your tax return with the Tax and Customs Administration, you must first fill in the Cerfa form no. 2086 and fill in the realized capital gains. Everything must be accompanied by the details of the operations.

The declared capital gain can be taxed in two different ways. As indicated above, for individuals, transfers are systematically subject to the regime of a single flat-rate tax, but “taxpayers can” choose to be taxed at either the flat rate of 12.8% or the progressive rate of income tax “, accurately Website of the Ministry of Economic Affairs. The sentence is complex and not necessarily easy to understand, but concretely, depending on your tax bracket, one option will be more beneficial than the other.

THE one-time direct debit is a tax of 30% (the flat taxas it is also called), and contains ” 12.8% for income tax and 17.2% for social security contributions “, if explained by the tax authorities. ” This is a flat rate because this rate does not take into account your tax bracket and your reference tax income “. Whether you earn 10,000 or 100,000 euros a year, you pay the same.

In 2023, the new rules will allow choosing and adapting this plan, which may be beneficial in certain cases. If you choose to be taxed according to the progressive income tax rate, depending on your salary, this can be more advantageous. However, there are some calculations to make before making your decision.

For example, if you fall into the first income bracket, your income tax rate is 0% according to Public service figures. If you choose to be taxed on your cryptos at the progressive rate, you only have to pay 17.2% tax on social security contributions. Much cheaper than the one-off flat rate of 30%.

If you fall into the 2nd income class, 11% will be withheld. It is therefore better to select the option ” progressive income tax scale for your cryptocurrencies. But for the following tax brackets, the reverse applies and it is better to opt for the one-off flat-rate tax.

How are mining professionals taxed?

Attention, here is also something new. If you have mining activities, you may also be subject to another tax: the activity ” falls under the regime of non-commercial profits (BNC), under thearticle 92 of the general tax law », said the ministry.

” The taxable result of this activity is determined according to the rules of common law applicable to non-commercial profits, it being understood that the acquisition value used for the calculation of the taxable result is nil if the bitcoins are allocated free of charge..”

If you find yourself in this case, you should consult a professional.

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