Hello 👋,
The law does not provide explicit information regarding the taxation of staking gains and more generally passive income. However, legal professionals believe that these gains must be declared as BNC (Non-Commercial Profits) each year, meaning they will be taxable upon receipt.
❗️ Rest assured, being taxed under the BNC regime is not a form of double taxation and can be more advantageous for your taxes, allowing you to benefit from deductions.
(You are exempt from tax for up to 305 euros of earnings!)
We have prepared a guide for you on staking gains and the BNC tax regime. 👇
🎓 How does the BNC tax regime work?
The BNC tax regime - non-commercial profits - stipulates that gains are taxed upon receipt.
💡 Therefore, it's not the same tax regime as that for the sale of cryptocurrencies. These are two distinct regimes.
Regarding cryptocurrencies, taxes will thus be triggered even without the sale of the cryptocurrency on the fiat value received.
▶️ The taxable amount will be equal to the fiat value of the cryptocurrency received.
📌 Example:
In February, I received 2 DOT as staking gains. At the time of receipt, the fiat value of these 2 DOT was 80 euros.
I would therefore have to declare 80 euros as BNC.
🔎 What will be my tax amount?
The amount of your tax on staking gains can be assessed independently. However, this would not provide any relevant information because the income derived from your staking gains will be added to all your other potential incomes subject to the income tax base.
❗️ Once the amount of your BNC (Non-Commercial Profits) income is declared, a tax deduction of 34% will be applied*. This amount cannot be less than 305 euros.
Thus, for up to a total of 305 euros in staking gains, you will not have to pay any tax!
Beyond this sum, the deduction will still apply, but it will not cover the entirety of the tax generated by the declared sum. Therefore, the tax will be minimized.
*Only if the total of your declared BNC is less than 77,700 euros.
The taxable sum will thus be deducted by 34%!
💡 The final sum of BNC will not be subject to a flat tax (unlike the 30% flat tax in the case of disposals) but will be integrated into the income tax base as well as social levies.
Thus, if you are an employee receiving a salary, this salary will also be subject to income tax. In this case, income from staking gains should be added to your salaries.
It is the final income that will then be subject to the progressive income tax scale.
💡 Social contributions of 17.20% are applicable on the fiscal result, i.e., on the amount of BNC after the 34% deduction.
📌 Example:
In February, I received crypto staking gains worth 1000 euros.
In June, I received staking gains worth 500 euros.
I will therefore declare 1500 euros in the specific BNC declaration box. On these 150 euros, I am entitled to a deduction of 34%, which is 510 euros less.
👉 I would therefore have to pay tax on 990 euros (income tax + social contributions of 17.2%).
These 99 euros will then be added to my other incomes which are also subject to income tax (e.g., salary).
👉 My tax amount will then be calculated according to the progressive scale of income tax.
🤔 What changes for me?
▶️ A different tax regime means a different declaration!
The main change for you as a taxpayer is the declaration process. You will need to declare the total sum of all your staking gains - valued in fiat on the day of receipt - in your income tax return.
If you have received staking gains (or passive income in general), you will need to fill out the 2042 C PRO form during your income tax declaration.
💡 This does not change the declaration on taxable operations and capital gains.
Several scenarios:
You have carried out only taxable disposal operations (crypto sale against fiat/currency/good/service): Form 2086
You have earned only staking gains but no taxable operations: Form 2042 C PRO
You have carried out taxable operations and staking gains: Forms 2086 and 2042 C PRO
💡 Waltio supports you through these changes by calculating the amount that needs to be declared as BNC and adapts its tax declaration guide to help you declare with peace of mind!