Crypto-assets: taxation adapts to investors’ profiles

Currently, individuals who sell digital assets for currency, goods or services are taxed on the capital gain.

In the case of occasional sales, the income is subject to a flat-rate tax of 30%, which may be increased by the Exceptional Contribution on High Income, without the possibility of opting for the progressive income tax schedule.

However, if the sales are shown to be regular due to their number, frequency or automation, then a flat-rate tax is excluded. Sellers are treated as professionals and must declare their gain as industrial and commercial profits (BIC – bénéfices industriels et commerciaux) and they may be liable to tax of up to 66.2%.

From 1 January 2023

From 1 January 2023, individuals who invest as part of a wealth management strategy will be automatically subject to the flat-rate tax of 30%, regardless of the volume of transactions. However, they can choose to opt for the schedule, subject to additional social security contributions of 17.2%. This option is of interest to households that are not taxable or fall within the 11% bracket and allows deduction of the social welfare tax (CSG) up to 6.8%.

Like stock market transactions, only individuals who carry out crypto-asset transactions under conditions comparable to a professional will be excluded from the flat-rate tax. In addition to the transaction volume, this status requires expertise in specialist information, the use of a sophisticated trading platform or complex speculative tools... All gains will need to be declared in the BNC category.

Key points

• Taxation of crypto-assets is changing from 2023.
• Non-professional investors will have the choice of taxation at 30% or the progressive income tax schedule, in addition to social security contributions.