You don’t have any digital assets, but do you know if your child does? If so, you probably need to declare them when completing your income tax return. Here’s everything you need to know.
It is an immutable annual task: the income tax declaration. How every year, we will have to look into it in the spring. But when filling it out, think: does your child own any digital assets? And do you have to declare them for him?
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 cryptoasset purchasing platforms. However, as Enzo Hallot, founder of Crypto-Patrimoine, points out, this is considered a foreign account and must be declared as such to the tax administration.
Up to 1500 euros fine
In the event of non-declaration, the fine can go 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-Patrimoine. it takes 5 minutes to fill out the form n3916. This form allows you to declare bank accounts or digital asset accounts abroad, as explained on the tax site. It is therefore necessary to fill in the case of holding digital assets such as Binance, Coinbase or even Bitpanda. Please note, however, that a 3916-3916 bis declaration must be submitted by 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 be thinking that he or she can’t have one. Indeed in France, you must be of legal age to buy crytpoactives, confirms Enzo Hallot. Large platforms, like Binance for example, require ID verification and often authentication with the camera, where you have to film yourself to ensure that you are the ID holder.
However, some miners have been able to access cryptoassets like Bitcoin through less careful platforms or by mining digital assets. It is also possible today to buy NFTs (for non-fungible tokens, digital property titles backed by the blockchain Editor’s note) with his bank card. As you can have a bank card at 16, it is possible to be exposed to these digital assets on marketplaces that offer NFTs, assures Enzo Hallot. Your child, even a minor, may therefore have digital assets that must be declared.
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But just because you make a statement doesn’t mean you’ll have to do anything. If, since 2019, you have been required to declare your capital gains to the tax authorities, these latter must exceed 305 euros per year to be taxable. If this is the case, you will either have to pay the flat tax of 30% (12.8% taxes and 17.2% social security contributions), or opt for the progressive scale of income tax. .
As long as you accumulate digital assets, you are not necessarily taxable but you must still make a declaration, explains Enzo Hallot. On the other hand, if you transfer a digital asset to a legal currency, you may be taxed. For example, if you sell Bitcoin to recover euros, you will be taxed in the event of a capital gain greater than 305 euros. And NFTs are considered a digital asset and therefore subject to the same tax in the event of capital gains.
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