After the National Assembly, the 2022 Finance Bill has just arrived in the Senate. Among his texts, some relate to the taxation of cryptocurrencies. They have already been adopted by the Lower House, which gives a first glimpse of future changes on the taxation of cryptocurrencies.
Currently, the capital gain on the purchase and sale of digital assets is subject to a flat-rate tax of 30% (the flat tax), for any capital gain greater than 304 euros (or equivalent in currency). In the future, income parameters could come into account, and put an end to the very severe scale of “usual investors” (professionals), taxed for industrial and commercial profits (BIC) up to 70%.
The future taxation of cryptocurrencies
For fairer taxation, “usual” investors would switch to the non-commercial profits (BNC) tax regime, which is more attractive and does not hamper cryptocurrency investments compared to investments in the stock market (the latter already came under the title BNC). As recalled Journal du Coin, the General Tax Code (CGI) does not put forward any criteria to distinguish usual investors from occasional investors.
It was therefore just as unfair for such a large tax gap to remain in place. The Senate has not yet debated the issue, but the National Assembly has already adopted three amendments to this chapter.
The other proposed modification for the tax on cryptocurrencies in France concerned the 30% flat-rate tax on individuals. The Government’s idea, adopted by the majority of the Lower House, would be to align the capital gains of cryptocurrencies with the taxation of capital gains on transferable securities (a share or a bond, for example).
In which case, individuals might have the choice and prefer to be taxed on the classic income tax schedule. The various amendments would make it possible to benefit individuals from the tranche comprised under € 25,711 per year, since the rate is less than 30%. Some households will no longer even be taxable, or at least, only the rate of social security contributions will apply.
Changes for 2022 taxes?
These are the two main chapters on which Parliament is currently debating in the context of the 2022 Finance Bill. The last question concerns the date of entry into force. Because if the application of these modifications does not imply big changes from an administrative point of view, it is not prohibited that the new provisions to better adapt the taxation of digital assets only take effect in 2023.