Hello,
Are you a French taxpayer who didn't make any capital gains on your digital assets in 2022? Are you wondering whether you still need to file a tax return for 2023?
We've got the answer for you!
💡 The law requires you to declare your taxable transactions. Whether you have capital gains or losses is irrelevant. It is therefore advisable to declare your taxable operations carried out in cryptocurrencies during the previous year even in the event of capital losses 😉
But how are digital assets taxed in France? In this article, we'll take you step-by-step through how digital assets are declared in France.
So, ready to find out how it all works? 😊
The taxation of digital assets in France:
In France, the taxation of digital assets has been regulated by Article 150 VH bis of the General Tax Code since 2019. When you exchange cryptocurrency for money or sell it to buy something, you have to declare. Tax will only be due if there are capital gains.
If there is a capital loss: this cannot be carried forward to your future years. However, you still have to declare your taxable transactions, and you won't have to pay any tax.
In the event of capital gains: if you make a profit by selling a cryptocurrency as an occasional private individual, you will have to pay a flat-rate tax of 30%, which includes social security levies of 17.2% and income tax of 12.8%.
Declaring capital losses :
Since 2019, cryptocurrency transactions have been subject to a specific declaration in the annual tax return in France.
You must declare taxable transactions carried out in cryptocurrencies, i.e.:
The sale of a cryptocurrency to a fiat currency ;
The sale of a cryptocurrency for the purchase of a good/service.
If you suffer a capital loss: don't panic, only the decline in value of your cryptocurrency will be taken into account.
💡 It is important to comply with current tax regulations and declare all your income and investments, including those in cryptocurrencies, to avoid any tax penalties or sanctions in the event of non-compliance.