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Practical Guide to Crypto-Assets
1. Tax Obligations of a Crypto-Asset Holder
Tax Filing Requirements
Every year, holders of crypto-assets are required to declare:
- their accounts held in France or abroad, using Forms 3916 and 3916bis;
- any capital gain, using Form 2086, which must be carried over onto Form 2042C for natural persons, and Forms 2031 and 2065 for legal entities.
Capital gains are taxable above €305 and are not calculated by financial institutions as they are for transferable securities.
Calculation of Capital Gains
The calculation method is set out in the Official Tax Bulletin BOI-RPPM-PVBMC-30-20, Section I, paragraph 1.
The applicable formula is as follows:
[disposal price] – ( [net total acquisition cost] × [disposal price] / [total portfolio value prior to disposal] )
All amounts are converted into euros at the exchange rate applicable on the date of the transaction. The greater the number of accounts held and the more diversified the portfolio, the more complex the calculation becomes.
Payment of Tax
Where gains and losses result in a net capital loss, no tax is due. Conversely, gains are subject to the flat-rate withholding tax (prélèvement forfaitaire unique – PFU) at a rate of 31.4%.
The taxpayer may elect to waive the flat-rate tax and opt for taxation under the progressive income tax scale instead. To do so, box 3CN on the income tax return must be ticked. This election is independent of any election that may be made in respect of real property capital gains.
