Bitcoin, Ether: France could change the taxation of cryptocurrencies

Several amendments adopted in committee at the beginning of October aim to modify the taxation of cryptocurrencies in France. That of the NFT could also be reviewed, if the bill is adopted.

Completing your tax return is always a tedious exercise, and if you have let yourself be tempted by cryptocurrencies, it extends the list of fields to fill out. However, the way in which you must declare your bitcoins or ethers in France could change in the future.

As revealed at the beginning of the month, Gregory Raymond, journalist at Capital and author of the newsletter specializing in cryptos ” 21 millions », Several amendments concerning the taxation of cryptocurrencies were adopted on October 5, 2021 by the Finance Committee of the National Assembly.

Amendments on cryptocurrencies and NFTs

Three other adopted amendments (available for consultation here, here and here) relate to a point regularly debated in the cryptocurrency sector: the particular or professional qualification. The goal is to bring clarity to a point that is greatly lacking and that worries people trading cryptocurrencies. The taxation which applies in one case or the other is indeed not at all the same. As pointed out by our colleague from Capital, Grégory Raymond, if a taxpayer is requalified as a professional, “ up to 70% tax applies on the capital gain », Against 30% if he has the status of individual.

The amendments tabled by Les Républicains (LR) and La République en Marche (LREM) both propose to align the framework with that of stock market operations. In this way, a person submit in a “usual” way, cryptocurrencies will not be taxed in Industrial and Commercial Profits (BIC) but in Non-commercial Profits (BNC).

LREM also suggests clarifying the criteria used to define whether it is trading ” usual ” Where ” occasional ». « Various elements are currently being studied, such as the frequency of sales or the use of professional software, but all of this is assessed on a case-by-case basis ”, confirms to Numerama the patrimonial engineer Martin Cortet. The amendment carried by LREM proposes to define the “usual” character in a more precise and qualitative way, in particular with a criterion of superiority of the capital gains from the sale of cryptocurrencies vis-à-vis other income.

the third amendment recently adopted in committee, deals with NFTs, these non-fungible tokens (non-exchangeable tokens) which allow digital files to be authenticated. Having become quite popular in 2021, NFTs guarantee their owners that they have a unique copy in their possession. Last March, for example, an NFT by artist Beeple sold for $ 69 million (far enough from what Numerama’s NFT reported to us, we have to admit).

Numerama’s NFT // Source: Numerama

The amendment adopted on 5 October in committee concerning NFT aims to exclude them from the general regime for the disposal of digital assets. « The idea proposed is that they are taxed according to their underlying asset, explain the patrimonial engineer Martin Cortet and the tax specialist Logan Chouquard of the firm Tacotax. If the NFT relates to a painting or a song, for example copyright taxation would apply. We can envisage that NFTs will eventually be backed by real estate, with the related taxation, even if we do not yet have a look back on such scenarios. ».

According to these experts, the amendment makes sense precisely, because the NFTs can relate to very diverse elements. ” Imposing all of them in the same way could hamper the development of the NFT market. »

Declaring your cryptos remains a very complex exercise

The fact that these amendments were adopted in committee is an important first step. It remains to be seen whether the bill with these amendments will be adopted. As cryptocurrencies democratize, further adjustments to their taxation will no doubt become necessary, especially in the way they are to be declared.

Right now the process is quite complex. ” Even for individuals, it is becoming more and more difficult to keep track of all your crypto transactions yourself, confirms Martin Cortet. As soon as you have four or five different cryptocurrencies and you do one or two transactions per month, calculating the capital gains and losses over a year quickly becomes very complex. ” A counterproductive complexity since it sometimes leads some taxpayers not to declare their capital gains at all. “Some people find themselves doing calculations for hours to declare a few euros of capital gains and they get discouraged”, confirms Martin Cortet.

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