Since April 7 (despite a few minor computer errors in the beginning), it has been possible to declare your 2022 taxes and especially your cryptocurrencies, which more and more French are holding among their assets.
Declaring that your cryptocurrencies have changed from one year to the next while the decentralized financial community is in turmoil. To assist you, we will review the main documents you must have and the best reflexes to declare your cryptocurrencies for taxes in 2022.
As you will see, significant changes to the declarations are provided by the changes that will take effect next year. However, in order not to forget important points, not get fined or just waste time, some advice that you should know this year will definitely be useful.
Cryptocurrencies and taxes: how do they work?
As in 2021, it is taxed with cryptocurrencies All capital gains above 305 euros and exchanged in fiat currency (Euros, Dollars, etc.). In other words, if you bought and resold bitcoin, ether, or other cryptos by realizing a capital gain, you would be taxed if you converted those funds into fiat currency.
If you keep your capital gains in a digital asset like a stablecoin, the French authorities will not ask you for anything. If you have purchased a physical property with your cryptocurrencies and they are related to a capital gain, you will be taxed at the time of resale of that property. Example: Buying a car with money earned from your Bitcoin investments and then reselling that car.
Taxed funds are subject to 30% flat tax (flat tax) 17.2% social security contribution and 12.8% tax included. From 2023, capital gains from the sale of cryptocurrencies will continue to be taxed by default on this amount. flat tax. But if the option proves to be more advantageous, it will be possible to resort to a more progressive scale. For now, we have to stick to one flat-rate tax.
👉🏼 Declaring your cryptocurrencies means taxing capital gains from the purchase and resale of digital assets.
👉🏼 Get tax on your cryptocurrencies, must have earnedand after replacing them in national currencies (like the euro).
👉🏼 This capital gain from the buying and selling of cryptocurrencies is subject to a 30% flat tax at the time of 2022 tax filing.
👉🏼 Note: If your capital gains amount does not exceed 305 Euros when converted to Euro (or foreign currency), You are not taxed when declaring your cryptocurrencies.
Save all transactions
Regardless of whether or not you have a total capital gain from your transactions for 2021, you must in any case record all your tax transactions. Any purchase of crypto to fiat currency and any sale of crypto to fiat currency should be noted. Therefore, depending on how you use cryptocurrencies and your buying speed, you will have more or less transactions to save.
To register them, download form Cerfa 2086. If you go through the electronic declaration by registering all transactions, the final amount in capital gain or loss will be automatically recorded in the 2022 main document of your income tax return: form 2042 (a time saver).
The important point is, don’t forget to fill in all your overseas accounts (if you’re going through platforms like Coinbase, Revolut, Binance, ZenGo, etc.). The French tax authorities order this and the fines are hefty for non-compliance. In a special article, we explain the importance of declaring our foreign accounts for 2022 taxes.
Highlights in 2022
While we wait for the end of the only flat rate tax that does not take into account everyone’s profile, we are working on the taxation of cryptocurrencies, other activities related to cryptocurrencies that are becoming more and more popular with more and more people. We consider NFTs, passive income (staking or lending), and business operations (like crypto donations).
For NFTs, there is still a lot of legal uncertainty as these tokens have multiple uses and both can fall under the category of artworks, digital assets and other portable property. If you have earned several thousand euros, it is recommended that you contact a tax lawyer. However, you can get tax exemption by earning up to 5000 Euros. If trading is done with crypto, you don’t pay taxes anyway.
If you lend your cryptocurrencies on platforms (“lending” refers to investments on centralized platforms and “staking” on decentralized platforms), the taxation for the fee charged will be different. Token revenues made on decentralized platforms such as Uniswap are not taxed. However, lending goes up to 30% on centralized platforms like Binance. This income should then be entered in the 2TR box of the main form (2042).
Source From: Google News