The 2022 tax season has been open for everyone since this morning! The online space for declaring your income is accessible. It will close depending on your department of residence between May 25 and June 7, 2022. Until then, crypto investors are also subject to taxation. Thus, they must fill out specific additional forms when making their declarations. Here is the short, concise guide to your tax obligations and a tool to help you easily calculate your taxable amount.
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Crypto taxation: the steps to take
It is important to note beforehand that individuals investing on an occasional basis are to be distinguished from professionals. The qualification is based on different criteria and the tax regime applicable to professionals is that of the BIC which will not be explained here. If you are a professional, you probably already know the procedure to follow. As a cryptocurrency holder and occasional investor, you have two main obligations:
Declaration of taxable disposals and gains
The tax authorities ask the holder of declare annually its taxable disposals carried out during the year as well as its capital gains or losses realized on these disposals.
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💡 A taxable disposal is the sale of crypto for something other than crypto. This therefore does not concern stablecoins. Payment in crypto for the purchase of a good or service must also be declared.
Once the taxable disposals have been identified, the taxpayer must calculate his realized capital gain as well as the taxation. In France, capital gains are taxable at the rate of flat tax of 30% but the calculation of the tax must include the amount invested, the capital gain realized and also the overall value of the cryptocurrency portfolio at the time of each taxable transfer.
The declaration of digital asset accounts abroad:
Whether or not you have carried out taxable transactions, if you hold accounts abroad, you are required to declare them using form 3916 bis. The declaration relates to digital asset accounts held, closed or opened abroad during the year 2021 via form n°3916-BIS. Thus, crypto accounts from French players such as Feelmining or Justmining are not to be mentioned.
Your simplified and automated crypto taxation
If the declaration seems to you to be an energy-intensive headache, know that there are solutions allowing you to simply fill in your declarations!
Waltio offers a tax declaration assistance tool that allows you to integrate your transactions and calculate your tax according to your profile. The user simply logs into their crypto accounts via API. The tool will thus be able to recover all the operations carried out since your registration in automatically identifying taxable disposals. The valuation of transactions at the time of the sale allows the tool to calculate the famous capital gain. Indeed, it calculates and takes into account the overall value of the portfolio at the time of the sale, in accordance with tax law.
Waltio supports more than a hundred platforms spread over various ecosystems such as Ethereum or Polkadot. Thus, the tool allows the automatic detection of all your accounts and their rapid additions. If you have carried out more complex operations such as staking, participation in an ICO or even a donation or transactions involving NFTs, Waltio will be perfectly suited to analyze them and integrate them into the calculations. In fact, these investments stamped “DeFI” are also supported by the application. Finally, Waltio will provide you with the necessary tax documents to keep and communicate to the tax authorities. You will thus be able to certify the procedures and calculations carried out on your account.
Worry no more! Waltio’s tax tool allows you to gracefully navigate the tax hurdle in front of you. An annual event that should be taken seriously. What’s better than a personalized assistant named Waltio ?
The information provided on this page is purely for informational purposes. They are not in no way legal, tax, financial or investment advice. Indeed, the company Waltio is a software publisher and can in no way provide you with tax advice. Thus, it declines all responsibility in the event of information, commentary, analysis, advice, advice and/or recommendations proving to be inaccurate, incomplete or unreliable or resulting in investment or other losses.