Posted Jan 10, 2023, 5:06 PMUpdated on Jan 13, 2023 at 11:46
Investors can smile. The provisions relating to the taxation of cryptocurrencies which came into force on January 1 are rather favorable to them. Here is what they will change for them.
1/ The possibility of choosing your taxation
Since 2019, any individual who invests in cryptocurrencies is required to declare their capital gains to the tax authorities. Since then, the rule is that from 305 euros per year of transfer, the taxpayer must pay the flat tax at 30% (i.e. 12.8% tax and 17.2% social security contributions). An alternative is now available to him. Article 79 of the finance law for 2022 makes it possible, for anyone who does not wish to pay the flat tax, to have the progressive income tax scale applied.
An interesting option for a taxpayer taxed at 11%, who will then be liable for 29.2% of taxes and social security contributions, i.e. less than the 30% of the flat tax. Better still: investors who would be non-taxable only have to pay the 17.2% social security contributions.
2/ A redefinition of the status of retail investor
The qualification of investors has also been reviewed. Until now, individuals could be assimilated to professionals beyond a certain level of capital gains or exchanges. The latter were, in fact, subject to the industrial and commercial profits regime (BIC), with a tax amount that could rise to 66.2%.
The Ministry of Economy, Finance and Industrial and Digital Sovereignty has decided that any sale of cryptoassets “carried out on a non-professional basis”as part of the management of its own private assets, will be subject to the flat tax regime – regardless of the amount or volume of transactions.
3/ Clarification regarding the earnings of professionals
Traders became taxable as non-trading profits (BNC). While they were hitherto affected by the BIC regime, they will now be “subject to the tax scale and social security contributions, less a 34% allowance (micro-BNC regime) or fees related to the activity (controlled declaration regime) ». This modification leads to a method of calculating profits that is more favorable to professionals.
The latter were indeed penalized by the previous one, which consisted of real-time taxation rather than when the gains are withdrawn – which forced professionals to sell assets, even when the prices were not oriented to their advantage, in order to be able to pay their taxes. Note that there is no change for the capital gains made on the mining of cryptocurrencies, which remains affiliated to the BNC regime.