You have crypto-currencies and you want to be in good standing vis-à-vis the state. You are right. We will explain how to make your declaration, you will see, it is not complicated and the risk of not declaring your crypto currencies is much riskier. We will present you how it happens, which accounts should be declared, the information to provide from the main platforms (Coinbase, eToro, Binance, Kraken…). What should I declare to taxes?
The first thing to report is your accounts abroad. Indeed, most platforms are foreign and you therefore have the obligation to declare its accounts. The state ensures that taxpayers do not end up in the same as those in the Panama Papers.
The second thing to declare is your capital gains. To understand what a capital gain is, you should know that all transactions that have been made between crypto-currencies and “traditional” currencies such as Euros or Dollars will have to be taken into account to declare your capital gains. How do I declare my accounts to taxes?
There are 2 very different cases in this situation for the annual tax return: French platforms and foreign platforms.
If you have opened an account in a French platform at Coinhouse for example, no worries, you will have nothing to declare. If your account is in another French company, you are at ease. Indeed, these companies are registered with the French authorities and do not pose a problem because the tax authorities will be able to know the identity of the taxpayers to pre-fill out your return.
If you have opened in a platform abroad, this is where you will have to be more rigorous in your declarations. The administration cannot know (for now) that you have an account. That’s why you need to make a statement to keep her informed. The declaration is made by filling in Form 3916. You can do this when you file online. How are winnings taxed?
Transactions between cryptocurrencies do not need to be reported and are not taxable. For example if you own Bitcoin, Ethereum and Tether and all your transactions are between these 3 cryptocurrencies, you will have nothing to declare.
On the contrary, all transactions that have been converted into euros or dollars must be reported. This is a provision of the law that requires French taxpayers to declare all transfers of digital assets.
To know the tax amount of your transactions, you will have to find all your transactions in euros or dollars and know the amount of your capital gains. At that time, you can use our cryptocurrency tax simulator.
If you have made a few transactions, it will be easy to do and you can easily justify your statements. On the other hand, if you have made dozens or hundreds of transactions (or if you want to have peace of mind), it may be useful to use a specialized platform that will help you establish the exact amount of your capital gain by connecting to your platforms. How do I complete my cryptocurrency return?
The declaration of crypto-currencies is found in the declaration of income in the category digital assets. You will have to fill out the Cerfa 2042 C form and the 3AN and 3BN boxes in it. There is one box for capital gains and another for capital losses.
To justify the amounts you have filled in these boxes, you will have to fill out the Cerfa 2086 form. This is where things can get complicated and the value of going through a specialized company like Waltio can help. You will indeed have to detail your operations and it is in this way that the administration will check if what you have filled is consistent. What are the risks in case of non-declaration?
There are several risks of sanctions depending on your offense. Risks in case of non-declaration of an account abroad
In this situation, you risk a fine that may vary depending on your situation:
- If you have omitted or your declaration is not accurate, you risk a fine of €125.
- If you have not declared your account, you risk a fine of €750.
- If you have not declared your account and there is more than €50,000 on it, you risk €1,500.
Risks in the event of non-declaration of a capital gain
There are also several scenarios in this situation:
- If you have made a mistake in your calculation, the amount of your tax will be increased by 10%. Be aware that if you have made a mistake and rectify it within 30 days, you are not risking anything.
- If the administration considers that your error is bad faith or that it is a deliberate breach, the increase will be 40%.
- If the administration considers that it is fraud, your tax will be increased by 80%. This is a scenario in which the administration considers that these are intentional acts to evade taxes.
What information should be provided according to the platforms?
We offer you the contact details of the main platforms to help you make your declaration. PlatformOrganismAddressBinanceBinance Europe Services LtdLevel G (Office 1/1235) Quantum House,
75 Abate Rigord Street,
Ta’ Xbiex XBX 1120,
MalteBitpandaBitpanda GmbHStella-Klein-Löw Weg 17,
AustriaBitstampBitstamp Ltd5 New Street Square,
London EC4A 3TW,
United KingdomBybitBybit Fintech LimitedC/O Campbells, Floor 2
Romasco Place, Road Town, Tortola,
British Virgin IslandsCoinbaseCoinbase Europe Limited70 Sir John Rogerson’s Quay,
Dublin D02 R296
IrelandCrypto.comForis DAX MT LimitedLevel 7, Spinola Park,
Triq Mikiel Ang Borg,
St Julian’s SPK 1000,
MalteeToroeToro (Europe) LimitedKanika Business Center,
4 Profiti Ilia Germasogeia,
4046 CyprusGeminiGemini Europe Services LTD.3rd Floor Suite 1
11 – 12 St. James’s Square
United KingdomFTXFTX Trading LTDLower Factory Road,
Antigua and BarbudaKrakenPayward Ltd.6th Floor,
One London Wall,
London, EC2Y 5EB,
UkKuCoinVistra Corporate Services CentreSuite 23, 1st floor,
Republic of SeychellesSwissborgSBorg SA8 rue du Grand-Chêne,
SwitzerlandAddresses of platforms for tax returns