Digital asset accounts are accounts that hold a person’s digital assets. A digital asset is an asset constituted by digital data whose right of use or ownership constitutes an element of a person’s heritage. These are virtual goods made up of digital documents such as software and multimedia content such as images, videos, graphics or sounds.
Digital assets have a financial value determined by supply and demand. The following are digital assets: cryptocurrency tokens, online bank accounts, websites, software, digital content such as music, books, films.
Declare a digital asset account
Any natural person domiciled in France must inform the tax authorities at the same time as the date of transmission of the income tax declaration of the references of the digital asset accounts opened, held, used or closed abroad. This declaration is made on the Cerfa form n° 3916-bis.
A declaration must be made for each digital asset account opened, held, used or closed abroad. The declaration must be attached to income tax declaration no. 2042, either online or in paper format if the income tax declaration is submitted in paper format.
In the event of omission or inaccuracy in fulfilling the reporting obligations, the holder of digital asset accounts is liable to a fine of 750 euros per undeclared account or 125 euros per omission or inaccuracy, within the limit of 10,000 euros per declaration. This fine is increased to 1,500 euros and 250 euros if the market value of the digital asset accounts opened, held, used or closed concerned is greater than 50,000 euros at any time during the year concerned.
Digital Asset Accounts: Declaration of Capital Gains on Sale
Capital gains from the sale of digital assets are subject to income tax unless the sale is less than 305 euros.
Calculation of the capital gain on sale
The amount of the capital gain on the sale of digital assets is equal to the sale price less the total acquisition price of the account multiplied by the sale price divided by the overall value of the account.
The transfer price corresponds to the amount received for the transfer minus the transfer costs. The total acquisition price of the account is equal to the sum of the prices paid to acquire the digital assets minus the sum of the initial capital shares included in the price or value of all previous transfers. The aggregate account value is the sum of the values of all digital assets held before the disposal.
To note : for each sale, you must complete declaration no. 2086.
The amount of the taxable capital gain corresponds to the sum of the capital gains of all the disposals for the year.
Capital losses realized during a year are deductible from capital gains on the sale of digital assets in the same year.
Amount of tax due
The amount of the capital gain from the sale of digital assets is subject to income tax at the rate of 12.8%, to which are added social security contributions of 17.2%.
Example :a person buys 5,000 euros of digital assets placed in a digital asset account. During that same year, he resold digital assets for 2,000 euros. On the day of the transfer, before the transaction, the account has a value of 10,000 euros. The amount of tax due is calculated as follows:
The sale price is 2,000 euros.
The total acquisition price is 5,000 euros without initial capital.
The overall value of the portfolio is 10,000 euros.
The amount of the capital gain is 2,000 euros – 5,000 euros x 2,000 euros/10,000 euros or 1,000 euros.
The amount of tax due is 1,000 x 12.8% or 128 euros.
The amount of social contributions is 1,000 euros x 17.2% or 172 euros.
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