Not much new… All old! – Since April 7, the tax season 2022 is open ! It’s never a good time, but you have to go through it… To make things easier, we’re going to take an overview of crypto taxation 2022. You’ll notice, nothing has changed since the ‘last year. Then, in a more forward-looking perspective and following the presidential election, we will address the possible consequences of the re-election of the President of the Republic, Emmanuel Macron.
In 2022, crypto taxation is stagnating!
Since the 2019 finance law, crypto taxation has only too much little evolved ! Indeed, between the statement of accounts opened and/or closed with an entity located abroad and the declaration of capital gains from the sale of digital assets to which the flat tax, no meaningful measurement has been taken when it comes to digital assets.
Yet the Deputy Pierre Person has worked extensively on the development of this tax system, but it has always faced mistrust from the Finance Commission, or theNational Assembly.
Promising tax measures swept aside by the National Assembly
For example, recently on the occasion of the finance law for 2022, Person Stone tabled an amendment to redirect part of the digital asset economy, to the real economy. His proposal was as follows: reduce the tax system for the payments made in cryptocurrencies of a amount less than €3,000. But like others, this proposal was rejected by the National Assembly leaving the taxation of the capital gain to the least penny spent on digital assets. The crypto-enthusiastic MP apologized for this refractory attitude:
“The Administration prefers to force the declaration of a CERFA for each purchase of a baguette in crypto. »
Pierre Person at the National Assembly during the debates for the 2022 finance law
In addition, Pierre Person had offered to detax the exchange of digital assets between companies when the beneficiary company does not generate any revenue, but this transaction is still considered as a taxable event. Here again, both the Finance Commission and the National Assembly ignored the argument of the deputy in rejecting this amendment.
However, some of the amendments presented to the finance law for 2022 will finally come significantly change the tax system cryptos. Although these measures could very well have been applied from January 1, 2022, we will still have to take our troubles patiently. Unfortunately, these measures will not, in principle, apply until January 1, 2023.
Significant changes for cryptos in the tax declaration for 2023!
In total, these are two amendments which have been validated by the Finance Commission, then by the National Assembly and the Senate at first reading.
A new tax regime applicable to habitual crypto investors
The first of these measures concerns crypto investors considered as “regular” investors. Currently, when crypto activities are considered to be carried out “on a regular basis”, capital gains are taxed as industrial and commercial benefits (BIC). This imposition can be punitive since it can reach a rate of 70% in some cases.
As of January 1, 2023, they may be taxed as non-trading profits (BNC) with more reasonable rates. In addition, it is possible to benefit from a right of option between taxation at the scales of income tax or of corporation tax. Moreover, if the usual investor realizes a turnover excluding tax less than €72,600 he will be able to benefit from micro-BNC scheme.
This amendment was adopted by the National Assembly and by the Senate in first reading. It makes it possible to align the tax system for cryptocurrency transactions on that of stock market transactions. Only, a sub-amendment was Annex to the text so that this new tax regime is only applicable to capital gains from disposals of digital assets made from January 1, 2023.
A right of tax option open to individual investors
The other measure adopted by the National Assembly and the Senate makes it possible to align the tax system for capital gains from disposals of digital assets on that applicable to capital gains from sale of securities.
Thus, retail investors will be able to opt for the income tax scale (IR) when the tax rate is more advantageous than the flat tax (30% rate). However, in the event of an IR option, you will still have to pay the rate corresponding to the social contributions (17.2%). Consequently, the IR option will only be advantageous for taxpayers who declare less than €25,711 in income per year.
For this text also a under amendment has been appended in order to make the right of option applicable only from the January 1, 2023.
Will the re-election of Emanuel Macron advance the taxation of cryptos?
On April 24, 2022, the verdict fell, the President of the Republic Emmanuel Macron was re-elected. In his program for these presidential elections, he did not present no measurement relating to digital assets, and therefore, de facto to the crypto taxation.
A ” european metaverse »but still … ?
It is only in one speech of March 17, 2022 that President Macron made a (small) allusion to the ecosystem digital assets speaking of ” european metaverse “. He thus expressed his wish:
“We will fight to build a European metaverse. This is a key subject both for, obviously, creation, but for the ability to allow all our creators (…), to create and not depend on Anglo-Saxon or Chinese players and aggregators, who will be able to completely circumvent the rules of respect for copyright and neighboring rights. »
Moreover, during an interview conducted by the independent media The Big Whalehe returned to this speech, stating that he wanted Europe to ” be a central player » of Web 3. He also said that he sees in the metaverse a enormous potential for culture and leisure. Asked about cryptos and the growing interest of the French, he remained more reserved.
The only certainty is that he wishes to bring out new french actors in the field, like Sorare and Ledger. In addition, Emmanuel Macron has stated that he does not believe ” not a self-regulated financial sector ». However, he did not put forward the beginning of a concrete measure for cryptos, but remains convinced that the subject ofdigital euro remains essential…
In short, there are currently few, if any, concrete measures relating to crypto taxation. The legislative elections of June 12 and 19 could improve this. Like Pierre Person, new MPs will be able to work to improve the tax regime applicable to digital assets. But also, tackling other projects such as NFTswhich are still devoid of any real legal regime.