Before June 8, 2021, tax returns are mandatory for all French citizens. Crypto-assets, if you own any, are part of this obligation.

It can very quickly become difficult to declare capital gains in the world of crypto-assets. Most crypto investors use several exchange platforms. They also make account-to-account transfers regularly.

They move and store their tokens on different wallets, and buy and sell these digital assets at different prices.

In addition, staking, airdrops and liquidity minning are ways of earning new tokens without actually buying or selling. In this way, these gains are still in a bit of a legal limbo when it comes to taxation.

In short, putting all this data together to calculate the exact capital gains quickly becomes a nightmare.

What you need to know about French tax rules for digital assets :

-> Declaring trading platforms «Digital asset accounts» opened, held, used or closed during the year with companies domiciled outside France.

-> Capital gains tax is 30 %.

-> Every year, there is a transfer allowance of 305 euros : this means that if the total capital gain does not exceed this amount, no tax is due.

-> Transactions between one digital asset and another are not taxable, including transactions with stablecoins.

Next, it's important to define your tax regime. Are you an individual or a professional investor?

This depends on the amounts exchanged, the number of transactions, the duration of positions and the know-how developed.

This assessment is made by the regulators on a case-by-case basis. However, it's easy to see for yourself whether you're a professional or not.

We suggest you use the services of our partner Waltio, for assistance with the taxation of your digital assets.

This will allow you to :

-> Easily retrieve your transaction history from exchange platforms.

-> Prepare your FEC (file of accounting entries).

-> Help you calculate and declare taxable capital gains.

-> To help you declare your foreign accounts.

-> You can also download their free white paper on taxation.

It's a 15-page document written by tax lawyer Alexandre Lourimi of ORWL Avocats which will give you a better understanding of the taxation of crypto-currencies. It is aimed at all individuals.

Click below to go to Waltio's website:

-> With our affiliation or without our affiliation