Crypto: how to deal with the tax authorities in 2022?

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The Fisc declared the official opening of the 2022 tax season on Thursday April 7th. All taxpayers are invited to file their tax declaration with the tax services or online. This year, crypto investors are also called upon to complete the necessary forms specific to their activity, to legalize their situation with the tax authorities.

What are the steps to follow ? How do I declare my offshore asset accounts? Here are the essentials to know about tax obligations related to cryptocurrency in 2022.

Crypto taxation: what are the steps to follow?

Taxation applied to crypto currencies distinguishes between two types of taxpayers:

  •     Individuals who invest in crypto occasionally
  •     The professional investor

According to the criteria defined by the Tax Department, the professional investor is subject to the classic BIC regime. The individual, meanwhile, has two main obligations:

  •     Declaration of taxable disposals and gains

The occasional investor, holder of crypto currencies, can make an annual declaration of his taxable transfers for the year, with his capital gains or losses realized on each transfer. A taxable disposal is the sale of a crypto for another crypto, another product or a service. Each transfer must be declared with its capital gains or losses, for taxation at a flat rate of 30%.

  •     The declaration of digital asset accounts abroad

Individuals who hold digital assets in accounts abroad must declare all their accounts using form 3916 bis. This obligation concerns all digital asset accounts held by the individual, whether closed or opened abroad, during the year 2021. Crypto accounts opened on French platforms such as Feelmining, Paymium, Justmining or CoinHouse are not affected.


How to calculate the capital gain associated with a transaction?

For each transaction to be declared, the crypto investor must also provide information on each capital gain and/or loss realized over the same period.

Here is the formula to calculate the capital gain associated with a crypto transaction:

Note that each transaction must be declared immediately after the declaration of an account abroad. Each exchange platform has a unique Cerfa No. 2086 declaration form. Box 3AN of form 2042-C is dedicated to the capital gain realized over the period. A capital loss must be reported in box 3BN.


How to avoid paying tax on crypto?

Any crypto transaction is now subject to a tax reporting obligation. Nevertheless, an option is possible to divert the complexity of the reporting process. Since any transaction carried out in euros or dollars requires you to declare your capital gains or losses, it is therefore sufficient to use a stablecoin to avoid paying the Flat Tax. This form of crypto follows the movements of a traditional currency. Just exchange your Bitcoins for a Stablecoin (USCS or USDT) to avoid taxation.