What is a cryptocurrency?
A cryptocurrency is a form of digital currency that uses cryptography to secure transactions and control the creation of new units. It operates decentralized, using blockchain technology, a distributed register that records all transactions made on a network of many computers (nodes). Each transaction added in a block is verified and encrypted by these nodes, guaranteeing security and transparency. Cryptocurrencies are independent of central banks and traditional monetary systems, thus offering an alternative to fiduciary currencies.
How are the capital gains of individuals imposed in France?
In France, the capital gains made by individuals on the sale of cryptocurrencies by individuals are considered as capital benefits or gains and are therefore taxable. Since 2019, these capital gains have been subject to a single flat-rate levy (PFU), also called “flat tax”, by 30%. This tax includes 12.8% for income tax and 17.2% of social security contributions. Taxpayers must declare these capital gains on their annual income declaration.
The tax regime applied is that of the capital gains regime on movable property, which simplifies the declaration and payment for taxpayers. This taxation aims to encourage transparency while integrating cryptocurrencies into the French formal economy.
What are the tax obligations of corporate companies?
Companies that carry out cryptocurrencies in France must comply with several specific tax obligations. First of all, they must integrate cryptocurrencies into their accounting assessment, classifying them as intangible assets if they are held as investments, or in stocks if they are intended to be sold. The gains or losses resulting from the fluctuation of the prices of cryptocurrencies, during their conversion to currency having legal lessons or used in commercial transactions, must be counted in financial result and are subject to corporate tax at the normal rate.
If you wish to control the tax rules applicable to cryptocurrencies, as well as the specificities for individuals and businesses, discover the Cryptocurrency taxation training In France.