Cryptos taxation: towards more advantageous conditions?

If it should not be expected to modify the levy rate on capital gains made from cryptos (30%), the 2022 finance law could bring its share of new features to simplify the task of investors and strengthenFrance's attractiveness.Paris deputy Pierre Person (LREM) filed Thursday, September 30, nine amendments that Capital has obtained.

1.Clarify the gray area between private and professional investor

France has acquired in 2019 with a clear tax regime around crypto-actives.However, the latter lacks readability in its implementation.Number of taxpayers who have benefited from the strong volatility of cryptocurrency (70% increase in the price of bitcoin just in August) fear to see their situation requalified into professional activity because of the important capital gains released.In the event of professional requalification, the tax can go up to 70%.

Rather than based on the declared amount, "the assessment of the professional, or not professional nature, of the purchasing activity of digital assets should thus be more based on qualitative criteria", proposes the amendment.For example: the use of advanced trading tools, so -called professional or premium financial information."It would thus be appropriate, to definitively rule out this legal uncertainty, to adopt a regime similar to the regime relating to stock market operations", insists the text.

2.Do not limit the maximum number of transfers to 20 operations per year

About 20% of taxpayers practicing Cryptos purchase-revenue achieve more than 20 taxable transfers per year, according to Waltio data, an online assistant that simplifies the declaration of capital gains in digital active ingredients.However, the print n ° 2086 provided for this purpose is limited in number of operations due to the number, due to the limited number of columns allowing them to be declared.

"It would therefore be appropriate to modify the print to allow it to add one or more sheets containing additional columns, thus making it easier to declare a number of operations greater than 5 or 20", indicates theamendment.

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3.Gather certain stock market orders in a single operation

When we carry out a transaction on an cryptos exchange platform, it is not uncommon for the latter to break down into several separate operations in order to correspond to the liquidity present in the order book and thus better correspond to the price ofassets.Consequently, the taxpayer is forced to postpone several sub-operations for the same transaction, before calculating and declaring added value.

“In order to facilitate declaration and control operations, it would be appropriate to allow declarants to bring together operations under the same transaction in a single transaction declared on form n ° 2086.However, this aggregation could only be possible for operations carried out in a short period of time and at almost identical prices, "warns the amendment.

4.Direct Cryptos to the real economy

A large number of investors leave their gains in cryptos in the form of stablecoins on their wallets.This is explained by a desire to protect yourself from the strong volatility, but also to avoid taxation in the event that they convert to euros.Thus, these unused funds are useful neither for the investor, nor for the real economy and remain locked in this digital world.There is currently no incentive device to orient these funds to the real economy.

“If we want to be able to orient these funds towards our productive economy, and even more so if we want to see the emergence of young companies specialized in the field of blockchain and crypto-actives, France must include, in tax law, an incentive devicecontribution of value in crypto-active to traditional societies ”, underlines the amendment.

"This device could draw inspiration from the supply regime provided for in article 150-0 B ter of the general tax code, while devoting the specificities of crypto-actives compared to traditional social titles", perhapswe read.

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5.Postpone the losses from one year to the next

The current tax framework only helps to attribute a possible value for capital gains made during the same year.Thus, a global value made in 2020 cannot be postponed in 2021.This situation does not allow investors to take into account their losses in their tax results of the posterior years, as is in the case in the traditional capital gains regime.

"Allow the postponement of net losses of digital asset disposal over the net capital gains of the divestive assets of the ten years following their observation appears as an essential measure to preserve the attractiveness of our tax regime", indicates the amendment.

6.Upcoming Crypto-Crypto exchanges for businesses

The exchanges of cryptos between companies are developing and allow the use of decentralized finance applications (loan, borrowing in crypto-actives), a right attached to a token (decentralized governance, Staking, etc..), or provide liquidity to the market.However, the exchange of cryptos for companies constitutes a fact that generates tax while, at the same time, companies do not benefit from any recipe and that the value of the token received can be subjected to high volatility.

"In the same way as the regime provided for individuals, the tax treatment of cryptocurrency exchanges between companies could be the subject of a tax neutralization of capital gains on digital assets", specifies the amendment.

7.Facilitate for a company the payment of cryptos to its partners or employees

It is frequent that, in Crypto projects and companies, partners and employees wish to receive part of their remuneration in digital active ingredients.These powers are also an additional means of motivating the teams.

However, contrary to the free attributions of social rights (AGA in particular), free attributions of digital assets (AGAN) are subject to various tax regimes, which therefore depend on the relationship between the transmitter and the beneficiary.From this, follows the fact that the AGANs give rise, for the beneficiary, to an immediate taxation at the time of the reception, while the latter has not received any counterpart allowing the payment of this.The beneficiary is therefore forced to sell his assets received free of charge to comply with his tax obligations.This situation makes the Agan mechanism completely ineffective in France.

"The challenge here is to provide a clear and unified framework to the AGAN by establishing a specific tax regime.This new regime could thus concern the powers of any type of digital assets (Utility tokens, Security Tokens, etc..) within the framework of attributions for the benefit of partners and/or employees, "explains the amendment.

8.Create a specific tax regime for NFT

NFT (non-Fungible Tokens, properties attached to digital objects) are not the subject of any clear legal qualification: some are part of the definition of digital assets, while others would be fiscallythe underlying activeness of the NFT.There is therefore a fiscal uncertainty about the treatment of NFT which makes their detention very difficult and the adoption of this new form of tokens.

"It would be appropriate, after having defined fiscally what an NFT was, expressly excluding these from the general capital gains regime for the sale of digital assets and creating an ad hoc diet at the NFT.This regime could thus provide for a taxation of NFT according to their underlying assets, "said the amendment.

9.Create a specific tax regime for cryptos payments

Payment in cryptos (especially via Crypto type payment cards.com or Binance Card) is certainly legally possible but fiscally very difficult to achieve.When a customer wishes to pay with the cryptos he has, this constitutes a generator of the capital gain on the assets of payment objects.Consequently, each payment requires that the taxpayer calculates and declares a taxable value.It is very restrictive and therefore limits the development of this type of payment.

"The challenge here is to create a specific tax regime for crypto-active payments.The latter could, in particular, provide an exemption from the amount of expenses made by card (like what exists for capital gains on works of art and collection).Similarly, the regime could correspond, at first, to a lump sum reduction covering the current expenses carried out in crypto-active and thus not subject to taxation on capital gains, "notes the amendment.