In France, income from staking, farming and mining is not clearly defined by law, creating legal uncertainty. Waltio applies a conservative interpretation of tax rules, generally treating these revenues as non-taxable events when earned. The gains obtained by masternodes, staking (immobilization of tokens to obtain more), farming and mining are not defined by the law. There is therefore a legal blur. Interpretations among tax lawyers differ. Here is the one put into practice by Waltio.

The mined cryptocurrencies, if they do not constitute a significant part of the total income of your tax household, could be integrated within your digital assets capital. Thus, they can be declared as professional (Non-Commercial Profits - BNC regime) or simply added within your portfolio. In the second case, the collection of this income is not a taxable event and its resale will be subject to the regime of capital gains in digital assets assimilated to the Single Forfaitary Levy (PFU).

The income generated through these transactions should not be a taxable event because the taxpayer does not benefit immediately.

Therefore, each transaction should be tracked and added to your overall digital asset portfolio at a total acquisition price of 0.

It is necessary to label transactions related to staking and other passive income. We will differentiate between staking on centralized platforms (Binance, Coinbase, etc.) and DeFi staking operated directly on the blockchain.

Simply label the interest payment transactions. A large part of these deposits are automatically labeled by the tool.

However, it is essential to check that all transactions of this type are properly labeled. Here is how to proceed:

Step 1: Go to the “My transactions” page

👉 A report must have been generated beforehand.

Step 2: Filter your transactions to refine your search. You can filter by:

👉 Transaction type: Deposit

👉 The platforms on which you staked

👉 The tokens on which you staked

Step 3: Select the transactions and label them as ”masternodes & staking”.

We recommend following this tutorial.

When you stake your cryptocurrencies in DeFi, you send them to the smart contract (outside your wallet) for the entire staking period.

However, the capital gain calculation requires having the total value of your portfolio at the time of each taxable transaction.

Thus, if you carry out a taxable transaction during the staking period, part of your cryptocurrency holdings will not be valued (as they are outside your wallet).

To avoid this, we have created a withdrawal label (“add staking”) that does not decrease the value of your portfolio and a deposit label (“unstaking”) that does not increase it. This way, throughout the staking period, your holdings are not impacted by staking-related transactions.

Step 1: You have 20 DOT and send 10 to the DOT staking smart contract.

They are locked for 6 months. You label the withdrawal operation of these 10 DOT as “add staking”:

Step 2: It is likely that during the 6 months, you will have taxable transactions. Your portfolio will be properly valued as it will count 20 DOT.

Step 3: After 6 months, you recover your 10 DOT and label the deposit operation of these 10 DOT as “unstaking”.

👉 It is essential to properly label both the withdrawal AND the deposit. Otherwise, your portfolio will be incorrectly valued.

👉 Deposits related to staking interest must be labeled as “Masternode & staking”.

👉 The use cases for all labels are explained in this article.