Cryptocurrency taxes: how to file a return in 2024?

Spring brings good weather, allergies and also tax returns. This immutable rule of nature, as unpleasant as it may be, is a must for everyone. If you have a neobank account, sold clothes on Vinted, rented an apartment on Airbnb or have cryptocurrencies, this applies to you too. Here are all the steps to follow in order to declare your digital assets to the tax authorities and to make your cryptocurrency declarations go well.

Bitcoin, Ethereum: what cryptocurrency taxation?

As of 2018, capital gains from digital assets were taxed in France and subject to and flat tax. But much has changed in 2023, although cryptocurrencies remain affected by taxation. Article 79 of the Financial Law for 2022 modified the tax regime applicable to cryptocurrencies and entered into force on January 1, 2023. It is still current in 2024.

PUSH flat tax about cryptocurrency exchange

So it is no longer the same operations that you have to perform, and flat tax crypto as we knew it is disappearing. However, digital asset owners, individuals and professionals remain tax payers – we cannot escape this tax. flat taxnot even for the new version of taxes.

There are now different tax options for declaring your cryptocurrencies and some users will be able to choose a progressive scale. ” Non-professional transfers will systematically fall under the single flat-rate levy regime. “, However, ” taxpayers will be able to choose to be taxed either at a flat rate of 12.8% or at a progressive rate of income tax », specifies the Ministry of 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 platforms for buying and exchanging cryptocurrencies. Indeed, “ just like bank accounts, neobanks or life insurance, crypto accounts opened abroad must be notified by the tax authorities, even if no deposit has been made to them or if they have been closed », summarizes RTL.

Binance is a foreign entity, so you will need to report your account to the tax authorities. The same applies to other platforms such as Kraken, Coinbase, Bitpanda, Crypto.com, etc. As for Coinhouse, there is no need to do this: the company is French and registered as a PSAN with the Financial Markets Authority – the tax authorities will find your accounts on the platform alone.

How to declare your Binance or other crypto platform account for taxes?

To report your accounts, you must proceed in the same way as when you report a bank account with neobank. You can find all the information on the procedure in our article on the topic, as well as a quick summary below.

To declare your account on a cryptocurrency exchange platform, you must fill out form No. 3916. You will also need to provide several pieces of information: your identity, account number, its nature (professional or personal), date of creation, name and official designation of the platform, and address exchange platform.

How to find the address of Binance and crypto platforms?

As with neobanks, it is sometimes difficult to find information about cryptocurrency exchange platforms. For a long time, Binance boasted that it had no headquarters in order to remain independent. like bitcoin “. For other platforms that are sometimes based in tax havens, this information is equally difficult to obtain. Fortunately, the Coin Academy site has compiled most of the platform addresses: all you have to do is find yours in the (long) list on the dedicated page to make your statement.

How to declare your cryptocurrencies for tax?

How are cryptocurrencies taxed for individuals?

A quick reminder on cryptocurrency taxation to get you started: only capital gains above 305 euros are taxed, only if you have converted your cryptocurrencies to fiat currency (e.g. euros) or to purchases of goods and services. If you converted your capital gain from bitcoin to ethereum without ever going through eurobox, you don’t have to worry.

To make a declaration to the tax authorities, you must first complete the Cerfa n°2086 form and provide information about the capital gains you have made. Everything must be accompanied by details of operations.

A recognized capital gain can be taxed in two different ways. As above, for individuals transfers systematically fall under the regime of a single flat-rate fee, but “taxpayers can” choose to be taxed either at a flat rate of 12.8% or at a progressive income tax rate », specifies the website of the Ministry of Economy. This sentence is complex and not necessarily easy to understand, but depending specifically on your tax bracket, one option will be more beneficial than the other.

The uniform flat-rate levy is a 30% tax (i.e flat taxas it is also called), and includes ” 12.8% for income tax and 17.2% for social security contributions ”, as explained by the tax administration. ” This is a flat rate as this rate does not take into account your tax bracket and your reference tax income “. Whether you earn 10,000 or 100,000 euros a year, you pay the same.

In 2024, the new rules allow you to choose and modify this deck, which can be beneficial in certain cases. If you choose to be taxed at a progressive rate of income tax depending on the amount of your salary, it may be more advantageous. But before you decide, you need to do some calculations.

For example, if you are in the first income bracket, your income tax rate is 0% according to the public service data. So if you choose to tax your cryptocurrencies on a progressive scale, you will only have to pay a 17.2% tax on social security contributions. Much more advantageous than a one-time flat-rate deduction of 30%.

If you are in the 2nd income group, 11% is deducted. It is therefore better to choose the option ” progressive income tax scale » for your cryptocurrencies. However, it is the opposite for the following tax bands and it will be better to choose a one-time flat-rate deduction.

How are miners taxed?

Attention, there is something new here too. If you operate a mining operation, you may also be subject to another tax: the activity “ falls under the regime of non-commercial profits (BNC) under Article 92 of the General Tax Code », According to the Ministry.

” The taxable income from this activity is determined in accordance with the common law rules for non-commercial profits, specifying that the acquisition value used to calculate the taxable income is nil if the bitcoins were allocated for free..”

If you are in this situation, you will need to consult a professional.

How to avoid flat tax crypto?

From 2023, the reporting and taxation of cryptocurrencies has changed. PUSH flat tax is no longer the only option, you can also opt for a progressive scale instead of a one-off lump sum deduction as explained above.

However, you cannot avoid paying taxesfrom the moment you realize more than 305 euros of added value.

From what amount is trading taxable?

Cryptocurrency trading itself is not subject to tax: capital gains from operations are taxed, and only when the profits made in cryptocurrency are converted into euros.

In addition to capital gains above 305 euros, you are subject to tax.

From what amount should you declare your cryptocurrencies?

While there is a minimum tax amount, there is no minimum reporting amount. Specifically, if you have an account on a cryptocurrency platform, you must declare it.

When should you declare your cryptocurrencies for tax?

You must declare your cryptocurrencies during your tax filing period. In 2024, this period opened in April and lasts for several weeks. The exact duration varies depending on the department of your residence. For online declaration:

• if you live in departments 1 to 19 (from Ain to Corrèze) and for non-residents of France, you have until May 23rd 23:59 at the latest to complete the declaration.
• for departments 20 to 54 (Corsica to Meurthe-et-Moselle) you have until May 30, 23:59.
• for departments 55 to 976 (from Meuse to Mayotte) you have until June 6, 23:59.

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