Cryptocurrencies, designed as tools of exchange in the digital world, are not currencies in the strict sense. They do not depend on any institution, have no legal tender and are irreplaceable. Financial Markets Authority (MFA) are best referred to as crypto assets.
Neither currencies nor means of payment, and the tax authorities do not consider them investments. In this sense, the gains from their sale for currencies, as well as the purchases of goods or services that you allow, constitute taxable transactions and must therefore be included in the income declaration.
In addition to the €305 of capital gains realized in the year, the gains are taxable.
occasional or habitual
So far, the taxes that apply to crypto assets distinguish the incidental nature from the usual nature of the transactions executed. In the first case, profits are subject to flat rate tax (PFU) which equals 30% of capital gains including 12.8% tax and 17.2% social security contributions.
Unlike what is practiced for capital gains income, you cannot subject your gains to the progressive scale of income tax by waiving the flat rate tax of 12.8%.
On the other hand, taxpayers who regularly buy and sell cryptocurrencies are subject to this progressive scope, under Industrial and Commercial Profits (BIC), which requires the creation of a dedicated legal structure.
Below the annual turnover of 176,200 euros excluding taxes, it is possible to take advantage of the micro-BIC system.
new tax
However, this distinction between incidental and habitual transactions seemed somewhat vague, leading to a tax adjustment for some taxpayers for whom tax authorities refused a PFU in order to subject them to less beneficial taxation than BICs.
from 1Verse January 2023 (therefore, aiming for a 2024 declaration), the tax authorities will distinguish between private sellers and professional sellers.
The former will benefit from the PFU regardless of the frequency of their transactions, provided they take place within the framework of their own asset management. They can also opt for the progressive scale if it proves more interesting.
Professionals, for their part, will be subject to progressive scaling into the Non-Commercial Earnings (BNC) category and no longer BIC.