10,000 taxpayers declared 213 million euros in net capital gains in 2023 to the tax authorities during the last income declaration according to information from BFMTV. This is half as much as the previous year.
During the 2023 tax declaration, 10,000 taxpayers declared transfers of cryptocurrencies to the tax authorities, generating a net capital gain of 213 million euros. This sum includes 245 million euros in gains and 32 million euros in losses. This information was revealed this Thursday morning by BFMTV. Remember that this was the 2023 declaration, which related to income for the year 2022.
According to their calculations, after the single flat-rate levy (PFU), the famous flat tax of 30% on investment gains, the French tax authorities recovered approximately 63.9 million euros in taxes on capital gains from cryptocurrencies in 2022 These figures represent a significant drop compared to the previous year, when 20,000 taxpayers declared 400 million euros in net capital gains.
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It must be said that the year 2022 was marked by strong instability in the cryptocurrency market. Major events such as the fall of Terra Luna and the collapse of crypto exchange FTX affected the market, leading to a considerable drop in the value of bitcoin, which fell to $16,000 in December 2022.
Despite past turbulence, 12% of French people will hold crypto-assets in 2024, according to a study published this week by KPMG.
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Furthermore, while there are good students, there are also those who decide to illegally evade taxes by not declaring their earnings. In 2021, according to Chainalysis, the French would have actually earned more than 4 billion dollars (or around 3.7 billion euros) thanks to cryptocurrencies. In this context, the State would have had to collect 1.2 billion, calculated Pierre Morizot, boss of the company Waltio, specializing in taxation, underlines BFMTV. However, the data for 2022 is not known.
In France, any taxable transfer of cryptocurrencies (sale for traditional currency or purchase of services with cryptocurrencies) must be declared. On the other hand, the exchange of cryptocurrencies for other cryptocurrencies is not subject to declaration.
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If the total sum of taxable transfers exceeds 305 euros annually, it is subject to a single flat-rate levy (PFU) of 30%. This rate includes 12.8% income tax and 17.2% social security contributions. Capital losses must also be declared.
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