Tax season is here. Like every year, this obligatory step can cause trouble, or even make you want to pull your hair out. Don't lose hope: here's how to do it.
Spring brings good weather, allergies, and also, taxes. This immutable rule of nature, however unpleasant it may be, is a must for everyone. If you have an account on a neobank, have sold clothes on Vinted, have rented your apartment on Airbnb, or have cryptocurrencies, this also concerns you. Here are all the steps to follow to declare your digital assets to the tax authorities.
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Bitcoin, Ethereum: what taxation for cryptocurrencies?
Since 2018, capital gains on digital assets were taxed in France and were subject to a flat tax. But in 2023, a lot has changed, even if cryptocurrencies remain affected by taxation. L'article 79 of the finance law for 2022 modified the tax regime applicable to cryptocurrencies, and came into force on January 1, 2023. In 2024, it is still relevant.
There flat tax about cryptocurrencies exchange
It is therefore no longer the same operations that you must carry out, and the flat tax crypto as we knew it is disappearing. Owners of digital assets, individuals and professionals, however, remain taxable – we cannot escape the tax. flat taxnor to the new version of taxes.
There are now different tax options for declaring your cryptos, and some users will be able to choose a progressive scale. “ Transfers made on a non-professional basis will systematically fall under the single flat-rate levy regime. “, However, ” taxpayers will be able to choose to be taxed either at the flat rate of 12.8%, or at the progressive income tax scale », Specifies the Ministry of the Economy. .
Should you declare your crypto account for taxes?
Not only are your cryptocurrencies taxable, but in most cases you also have to declare your accounts on crypto purchase and exchange platforms. Indeed, “ in the same way as bank accounts, neo-banks or life insurance, crypto accounts opened abroad must be brought to the attention of the tax authorities, even if no deposit has been made on them or if they have been closed “, summarizes RTL.
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Binance is a foreign entity, so you will need to declare your account to the tax authorities. The same goes for other platforms, such as Kraken, Coinbase, Bitpanda, Crypto.com, etc. As for Coinhouse, no need to do this: the company is French, and it is registered as a PSAN with the financial markets authority — the tax authorities will find your accounts on the platform on their own.
How to declare your Binance account or on another crypto platform for taxes?
To declare your accounts, you must follow the same steps as when you declare a bank account at a neobank. You can find all the information on the procedure in our article dedicated to the subject, as well as a quick summary below.
To declare your account on a cryptocurrency exchange platform, you must complete the form n°3916. You will also need to provide several pieces of information: your identity, your account number, its nature (professional or personal), its 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 exchange platforms is sometimes difficult to find. For a long time, Binance boasted of not having a head office, in order to remain free “ like bitcoin “. For other platforms, which are sometimes domiciled in tax havens, it is just as difficult to obtain this information. Fortunately, the Coin Academy site has compiled most of the addresses of the platforms: all you have to do is find the address of yours in the (long) list on the dedicated page.
How to declare your cryptocurrencies for taxes?
How are cryptocurrencies taxed for individuals?
A quick reminder on the taxation of cryptocurrencies to start: only capital gains of more than 305 euros are taxable, only if you have transformed your cryptos into fiat currency (for example, into euros), or into purchases of goods and services. If you transformed your capital gain from bitcoin into Ethereum, without ever going through the euro box, you are not concerned.
To make your declaration to the tax authorities, you must first complete the Cerfa form n°2086 and enter the capital gains you have made. Everything must be accompanied by details of the operations.
The declared capital gain can be taxed in two different ways. As indicated above, for individuals, transfers systematically fall under the single flat-rate levy regime, but “taxpayers can “ choose to be taxed either at the flat rate of 12.8%, or at the progressive income tax scale “, precise the website of the Ministry of the Economy. The sentence is complex and not necessarily easy to understand, but concretely, depending on your income tax bracket, one option will be more advantageous than the other.
THE single flat-rate deduction is a 30% tax (the flat taxas it is also called), and it includes “ 12.8% for income tax and 17.2% for social security contributions “, as explained by the tax administration. “ 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 per year, you pay the same.
In 2024, the new rules allow you to choose and adjust this package, which can be advantageous in certain cases. If you choose to be taxed according to the progressive income tax scale, depending on your salary, this may be more advantageous. There are, however, some calculations to make before making your decision.
For example, if you are in the first income bracket, your income tax percentage is 0%, according to Public Service figures. If you choose to be taxed on your cryptos with the progressive scale, you will therefore only have to pay 17.2% tax, for social security contributions. Much more advantageous than the single flat rate deduction of 30%.
If you are in the 2nd income bracket, you are deducted at 11%. It is therefore better to take the option “ progressive income tax scale » for your cryptocurrencies. But for the following tax brackets, it is the opposite, and it will be better to choose the single flat-rate deduction.
| Income brackets | Tax percentage |
|---|---|
| Up to €10,777 | 0% |
| From €10,778 to €27,478 | 11% |
| From €27,479 to €78,570 | 30 % |
| From €78,571 to €168,994 | 41% |
| More than €168,994 | 45% |
How are mining professionals taxed?
Be careful, there is something new here too. If you have mining operations, you may also be subject to another tax: the activity “ falls under the non-commercial profits regime (BNC), within the framework ofsection 92 of the general tax code “, according to the ministry.
“ The taxable income derived from this activity is determined in accordance with the rules of common law applicable to non-commercial profits, it being specified that the acquisition value used to calculate the taxable income is zero when the bitcoins have been allocated free of charge..”
If you are in this situation, you will need to consult a professional.
When should you declare your cryptocurrencies for taxes?
You must declare your cryptocurrencies during tax filing season. In 2024, this period opened in April, and lasts for several weeks. The exact duration changes depending on your department of residence. For online declarations:
- if you live in departments 1 to 19 (from Ain to Corrèze) and for non-residents of France, you have until May 23, 11:59 p.m. at the latest to complete your declaration.
- for departments 20 to 54 (from Corsica to Meurthe-et-Moselle), you have until May 30, 11:59 p.m.
- for departments 55 to 976 (from Meuse to Mayotte), you have until June 6, 11:59 p.m.