The tax treatment of airdrops depends on several factors: airdrops received without prior action may be non-taxable upon receipt, while airdrops resulting from voluntary actions are subject to BNC (non-commercial income) regimes. This article details the three possible scenarios and explains how to correctly declare your airdrops based on your situation.

Are you wondering about the taxation of airdrops? The answer is not as simple as yes or no. Let's look at the different possible scenarios together:

There are 3 scenarios to consider, and each will have different tax treatment.

By unexpected airdrop, we mean a situation where you received an airdrop without knowing you were going to receive one.

This is a case where you took no specific actions to obtain this airdrop: you didn't buy a crypto specifically to receive an airdrop, you didn't voluntarily use a protocol or register on a list. It is therefore a gain from the sky, as the name suggests.

In this case, it is possible to consider that the airdrop is not taxable upon receipt. You don't need to declare its receipt or pay tax. It will be considered as a windfall gain.

The acquisition value of the token received in the airdrop is equal to its market value on the day of receipt.

If you sell the tokens received from the airdrop in fiat, you will still need to declare this transaction and pay tax if you realized a capital gain.

Let's look at an example:

You receive an unexpected airdrop of 10 AIR. When you receive these cryptos in your wallet, the amount of AIR is 1 AIR = 10 euros.

The amount of your airdrop is therefore 100 euros when you receive it.

These 100 euros will be added to the value of your crypto portfolio as a whole, and you should consider that the 10 AIR were acquired at an acquisition price of 100 euros.

It is only at the time of resale against fiat/goods/services of these 10 AIR that you will be taxable if you realize a capital gain.

Case: You took actions to obtain your airdrop (interactions with a protocol, registration on a list, etc.), so your airdrop could be subject to taxation.

According to the general principles of French tax law, passive gains may be subject to taxation upon receipt under the BNC (non-commercial income) regime. In this scenario, your airdrop would be taxable as BNC and should be declared at its value when received.

The declaration as BNC is made during the income tax return and must include the amount of "gains". This declaration will then affect the acquisition price of the cryptocurrency.

Let's look at this in an example:

You receive an airdrop of 10 ALT.

When you receive these cryptos in your wallet, the amount of ALT is 1 ALT = 10 euros. The amount of my airdrop is therefore 100 euros when I receive it.

You will therefore need to declare 100 euros in the BNC category during your income tax return.

What tax for your airdrop?

The tax will depend on your income tax. In fact, the amount declared as BNC will be included in the calculation base for income tax and will therefore be subject to the progressive rate.

The acquisition value of your airdrop will then be equal to the value declared as BNC.

In the example above, the acquisition price of your airdrop will be equal to 100 euros. It will be included in the total value of your portfolio and will be taxable under the capital gains regime if you realize a capital gain during a future sale.

Scenario 3: I Received an Airdrop and I Don't Declare it as BNC

In contrast to the scenario presented above, this is a case where you receive an airdrop but it is not or has not been declared upon receipt as BNC.

The failure to declare upon receipt will result in a difference in the acquisition price.

If you don't declare the receipt of your airdrop as BNC, then the acquisition price of it will be zero (0 euros). A bit like if you had obtained it for free. In this case, you will only be taxable the day you decide to sell the amount of this airdrop. You will thus realize a capital gain (since you obtained these cryptos at a zero price).

Let's look at this in an example:

You receive an airdrop of 10 MAT.

When you receive these cryptos in your wallet, the amount of MAT is 1 MAT = 10 euros. The amount of my airdrop is therefore 100 euros when I receive it.

You do not declare these revenues as received as BNC.

Your 10 MAT will be added to the total value of your portfolio and the acquisition price of these will be 0 euros.

What tax for your airdrop?

Tax will be due upon sale under the capital gains regime taxed at 30%.

You decide to sell your 10 MAT for 100 euros. You will therefore have a capital gain of 100 euros on this transaction (the calculation is nevertheless more complex as it must take into account a fraction of the total value of your portfolio and the total acquisition price of your cryptocurrencies).

❗️ Since the law is vague and imprecise regarding the taxation applicable to operations generating passive income in cryptocurrency, the tax points presented in this article are fiscal interpretations. They do not constitute financial or tax advice but a simple interpretation of the laws according to experts. If in doubt, do not hesitate to turn to a specialized lawyer.