If the purchase of cryptocurrencies cannot normally occur before your child turns 18, it is possible that the latter nevertheless holds digital assets that you must then declare.
It is an immutable annual task: the declaration of income. How each year, it will be necessary to look into it in the spring. But when filling it out, consider: does your child have any digital assets? And do you have to declare them instead?
Let’s start with the case of an adult child, who would still be attached to your tax household. The latter can perfectly have accounts on platforms for the purchase of crypto-assets. However, as Enzo Hallot, founder of Crypto-Patrimoine, reminds us, this is considered a foreign account and must be declared as such to the tax authorities.
Fine of up to 1500 euros
In case of non-declaration, the fine can range from 750 euros (for an undeclared account) 1500 euros (if the account is valued at 50,000 euros or more). It is therefore better to ask your children if they have digital assets, and in which case to declare them, advises the founder of Crypto-Heritage. it takes 5 minutes to complete the form n3916. This form allows you to declare bank accounts or digital asset accounts abroad, as explained on the tax website. Please note, however, that a 3916-3916 bis declaration must be subscribed per foreign account. If the investor has two foreign accounts, he therefore completes 2 forms.
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Miners can also have digital assets
If your child is under 18, you may think he can’t have one. Indeed in France, you have to be of legal age to buy crypto-assets, confirms Enzo Hallot. The big platforms, like Binance for example, ask for ID verification and very often authentication with the camera, where you have to film yourself to make sure that you are the holder of the ID.
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Nevertheless, some miners have been able to gain access to crypto-assets like Bitcoin through less watchful platforms or by mining digital assets. It is also possible today to buy NFTs(for non-fungible tokens, digital titles of ownership backed by the Ed. blockchain) with his credit card. As you can have a bank card at 16, it is possible to be exposed to these digital assets on market places that offer NFTs, assures Enzo Hallot. Your child, even a minor, may therefore possess digital assets that must be declared.
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But just because you make a statement doesn’t mean you’re going to have to pay something. If, since 2019, you are required to declare your capital gains to the tax authorities, these must exceed 305 euros per year to be taxable. If this is the case, you will have to pay the 30% flat tax, ie 12.8% tax and 17.2% social security contributions.
As long as you accumulate digital assets, you are not necessarily taxable but you still have to make a declaration, explains Enzo Hallot. On the other hand, if you sell a digital asset to a currency that has legal short, you may be taxed. For example, if you sell Bitcoin to recover euros, you will be taxed on the capital gain. And NFTs are considered a digital asset and therefore subject to the same tax in the event of a capital gain.
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