Not much new … All old! – Since April 7 has tax season 2022 is open! It’s never a good time, but you have to go through it … To make things easier, we’ll take a look at 2022 crypto taxation. You’ll notice nothing has changed since last year. Then, in a more forward-looking perspective and after the presidential election, we will address the possible consequences of the re-election of the President of the Republic, Emmanuel Macron.
In 2022, crypto-taxation will stagnate!
Since the Finance Act of 2019, crypto-taxation has only too much slightly developed ! Actually between account statement opened and / or closed with a unit located abroad and statement of capital gains on the sale of digital assets where to flat tax, no meaningful measurement is taken when it comes to digital assets.
Anyway Deputy Pierre Person has worked extensively with the development of this tax system, but it has always met with distrust from the Finance Commission or fromNational Assembly.
Promising tax measures swept aside by the National Assembly
For example. recently on the occasion of the Finance Act for 2022. Person Sten tabled an amendment to redirect part of the digital asset economy, to the real economy. His suggestions were as follows: reduce the tax system for payments made in cryptocurrencies by one amount less than € 3,000. But like others, this the proposal was rejected by the National Assembly leaving the taxation of the capital gain to the smallest krone spent on digital assets. The crypto-enthusiastic MP apologized for this refractory stance:
“The administration prefers to enforce the declaration of a CERFA for every purchase of a baguette in crypto.”
Pierre Person at the national meeting during the debates to the 2022 Finance Act
In addition, Pierre Person had offered to tax-free exchange of digital assets between companies when the beneficiary company does not generate any revenue but this transaction is still considered a taxable event. Here, too, both the Finance Commission and the National Assembly ignored the argument of the deputy in reject this amendment.
However, some of the amendments submitted to the Finance Act for 2022 are finally coming change the tax system significantly crypto tower. Although these measures could very well have been applied from 1 January 2022, we will still have to take our problems with patience. Unfortunately, these measures will in principle only apply on 1 January 2023.
Significant changes for cryptocurrencies in the 2023 tax return!
In all, these are two amendments which has been approved by the Finance Commission, then by the National Assembly and the Senate at first reading.
A new tax system applicable to ordinary crypto investors
The first of these measures concerns crypto – investors considered “ordinary” investors. At present, when crypto activities are considered to be carried out “regularly”, capital gains are taxed as industrial and commercial benefits (BIC). This imposition may be punitive as it can reach a rate of 70% in some cases.
From 1 January 2023, they may taxed as non-business profits (BNC) with more reasonable prices. In addition, it is possible to enjoy one suffrage between taxation on the scales of income tax or of corporation tax. Moreover, if the usual investor realizes a turnover excluding tax less than € 72,600 he will be able to enjoy micro-BNC scheme.
This amendment was adopted by the National Assembly and the Senate at first reading. It makes it possible to unify the tax system cryptocurrency transactions on it of stock market transactions. Only one sub-amendment was Appendix to the text so that this new tax scheme only applies to capital gains on the disposal of digital assets produced by January 1, 2023.
A right to tax law open to individual investors
The second measure adopted by the National Assembly and the Senate makes it possible to adapt the tax system to capital gains on the disposal of digital assets on the applicable re capital gains on the sale of securities.
Retail investors will thus be able to do so select the income tax scale (IR) when the tax rate is more favorable than that flat tax (30% rate). However, in the case of an IR option, you will still have to pay the corresponding rate social security contributions (17.2%). The IR option will therefore only be beneficial to taxpayers who report less than € 25,711 in income per year.
For this text also one under change has been added to exercise the right to vote only from it January 1, 2023.
Will the re-election of Emanuel Macron promote the taxation of cryptocurrencies?
On April 24, 2022, the verdict fell, Republican President Emmanuel Macron was re-elected. In his program for these presidential elections, he was not present no measurement related to digital assets, and therefore de facto to crypto taxation.
ONE ” European metavers »but still … ?
It’s only in one speech of March 17, 2022 that President Macron made one (small) allusion to the ecosystem digital assets talk about ” European metavers “. He thus expressed his wish:
“We will fight to build a European metavers. This is a key issue both for, of course, creation, but for the ability to allow all our creators (…) to create and not be dependent on Anglo – Saxon or Chinese players and aggregators. , which will be able to completely circumvent the rules of respect for copyright and related rights. “
In addition, during an interview conducted by the independent media The big whalehe returned to this speech and said that he wanted Europe to ” be a key player » of Web 3. He also said that in the meta-verse he sees one enormous potential for culture and leisure. Asked about cryptocurrencies and the growing interest of the French, he remained more reserved.
The only certainty is that he wants to bring out new French actors in the field, as Sorare and Ledger. In addition, Emmanuel Macron has stated that he does not believe in ” not a self-regulated financial sector ». However, he did not make the beginnings of a concrete measure for cryptocurrencies, but remains convinced that the subjectdigital euro remains crucial…
In short, there are currently few, if any, concrete measures regarding crypto-taxation. The parliamentary elections on 12 and 19 June can improve this. Like Pierre Person, new MPs will be able to work to improve the digital asset tax system. But also to tackle other projects such as NFTswhich is still devoid of any actual legal system.