How to declare taxes on its gains of crypto-currencies ?

You have made good investments on the market of crypto-currencies, be it in Bitcoins, Ethers, or any other alt, and you want to take profits. But will you be taxed on your capital gains ? The answer is yes. Since 2014, Bercy has published instructions for reporting capital gains on crypto-currencies. Here’s what it is in France.

As you probably know, the wealth tax has been replaced by the IFIS, it is therefore more useful to address the question of the ISF. However, you have to pay taxes on your capital gains.

Taxation of the trading of crypto-currencies

If there is still no specific legislation in relation to the taxation of crypto-currencies, the tax administration is also positioned to clarify what it expects of taxpayers who have pocketed gains via Bitcoin and company. This doctrine tax was enacted as soon as 2014. Two cases are presented as a function of the frequency of the activity :

  • for the capital gains generated by the sale of Bitcoins (or other) on an occasional basis : http://bofip.impots.gouv.fr/bofip/2824-PGP.html?identifiant=BOI-BNC-CHAMP-10-10-20-40-20160203 ;
  • for the capital gains generated by the sale of BTC (or other) as usual : http://bofip.impots.gouv.fr/bofip/4755-PGP.html?identifiant=BOI-BIC-CHAMP-60-50-20140711.

Taxation of trading as a casual

For disposals are infrequent, which are considered by Bercy as operations management of the heritage, the gains depend on the tax on the income in respect of non-commercial profits (BNC). It will also need to pay social contributions. In practical terms, this means that in the end your gains should be reduced by approximately 60 %.

Regime of taxation on trading as usual

For the assignment of crypto-currencies, frequent trading activity is considered as a professional activity thus depends on the BIC (industrial and commercial profits). Relative to the taxation regime for trading on an occasional basis, you will need to pay in more social security contributions, for example, by the URSSAF.

impôtDeclare his taxes – source Pixabay

As usual, or occasional, how do we distinguish ?

Unfortunately, there is no objective criterion to make the difference between trading as a casual or regular. The distinction is made on a case-by-case basis, which means that in case of control the disputes between the individual and the fisc French could rain.

Please also note that the concept of surplus-value also applies if you have used your Bitcoins to buy goods without going through the check euro. For example, if you bought 2 Bitcoins to € 1,000 and that you have then paid a Bitcoin to adjust a trip value of 5 000 €, 4 000 € of capital gain must be reported .

Big gains with crypto-currencies ? Visit an accountant or a tax lawyer !

You have understood, even if the French tax administration has clarified its position on Bitcoin for a few years already, it is still a posture, the contours of which are not net, and that is not validated by any text of a specific law or case law. In addition, the doctrine of Bercy is particularly harsh, especially compared to the regime of capital gains on securities.

If you have pocketed significant gains through your trading in crypto-currencies, it is strongly advised that you approach a tax advisor who will be able to help you identify the right approach. In some cases, the creation of a society that allows for a reduction of taxation benefiting from the tax regime of the companies, much more favorable.

Source : AvocatsFiscalistes.fr