Hi there 👋
1/ What are the tax obligations regarding crypto-assets?
During the tax return campaign in France, there are two obligations related to the declaration of the cryptocurrencies you own.
In the case of sales of digital assets against state monetary currencies such as (Euro, or Dollar) or the purchase of goods or services in cryptocurrencies, it is necessary to calculate and declare the capital gains or losses realized. It is necessary to declare all accounts opened, used or closed during the year 2022. Thus, an account opened after January 1, 2023, is excluded from the scope of the law, for the 2022 tax return campaign. However, it will have to be reported in 2023.
Here are more details on the taxation of cryptocurrencies for individuals in France
For more information, we recommend reading our white paper.
2/ Do you need the entirety of my transactions?
We require your entire transactions since the very first transaction made on your accounts to calculate your taxable gains. For example, if you bought 1 Bitcoin in 2017 and resold in 2020, we need to know the purchase price in 2017 to calculate your taxable gain.
Transactions that involve only Euro are not necessary for your taxable capital gains calculation. Only EUR↔crypto, crypto↔crypto and crypto↔EUR transactions are.
3/ What are the documents produced by Waltio?
💡 Here is our dedicated article on this topic.
We prepare 4 documents:
Tax certificate to correctly carry forward taxable gains – This is a legal letter that attests to the calculation work done. It indicates the overall capital gain or loss and informs where to report this amount in the 2042-C tax return (done automatically during a digital return).
Schedule of annual capital gains declaration - Pre-filled Form 2086 – Excel table that gives you the figures to be reported in your personal space (impôt.gouv.fr) or to be sent in .pdf.
Stock sheet - This document allows you to follow the stock and its value over time. In case of error in the account, it allows to easily identify it.
General Ledger - This document is not required to be attached to the capital gain's declaration. However, in the event of a tax audit, it must be sent to the tax authorities. It is used to justify the calculations made.
We also provide information about the 3916-BIS form to help you declare your foreign accounts.
4/ How to add my accounts to Waltio?
To get your analysis and your tax documents, you need to proceed in two steps:
Then, once you have them, you just have to upload them on your Waltio account and choose the exchange corresponding to your files.
5/ What to do when I use a platform that is not supported by Waltio?
Our tool mainly reads files in .csv format. Please remember to check the article above as we are looking for compliant users to integrate some platforms.
If we do not support the platform you are using, we can only recommend you to use our tool:
- By adding transactions manually: this happens in step 2. My Transactions (at the top of your screen). You have to click on “create a new transaction” (on the right side of your screen). Then, you have to choose the type of transaction and fill in the information. Once the transaction is well-informed (price and crypto of sending and receiving selected). Finally, click on “back to the list of my transactions.”
- By filling in your public address (public key), we can retrieve your transactions.
- By using a Waltio file format
6/ How to qualify a crypto activity as usual or occasional?
To qualify a trading activity as occasional or usual, it is necessary to take into account other criteria such as the amount of transactions, the share of the income of the tax household from the trading activity of digital assets and the means put in place (the use of derivatives, additional investments ...).
The vast majority of cryptocurrency owners have an activity qualified as occasional, taxable therefore to the regime associated with the single flat-rate levy (PFU- Flat-tax).
Qualifying your activity and, therefore, recommending you more one than the other is a tax consulting service. This profession is regulated and tax lawyers have the exclusive right to provide this service.
The tax system applying to an individual or a company is indeed different, the amount of taxation differs according to the status.
If the income from your digital asset trading activity is a significant part of your taxable income, then it is recommended to declare this activity as a professional activity to the tax authorities.
We cannot give you more details about these activities as this could be considered as tax advice, which is not the nature of our activity. The profession of tax advisor is regulated and reserved to tax lawyers, who have the exclusivity of the activity. To answer your questions, we can recommend our tax lawyer.
7/ What do the warnings correspond to?
Our warnings are intended to draw your attention to taxable transactions, the purpose being to confirm that they are indeed taxable and that your calculation of the taxable amount is correct.
You can review your transactions one by one and categorize them as payments (taxable transactions) or hacks, losses, donations, transfers between accounts (non-taxable transactions).
If you have a lot of warnings, have you collected all your account information (exchange, wallet) on Waltio?
We recommend that you review your transactions one by one and categorize (or label) them in order to have the right accounting record.
To reduce your number of warnings considerably, we offer you a 4-step help:
1- Check that you have filed your transaction history, deposits and withdrawals for each exchange platform or wallet you have used
2- Indicate if you have made payments in cryptocurrencies during the analysis
8/ Does Waltio allow me to have an estimate of the year 2022?
Yes, it is now possible to analyze your transactions for the year 2022. On the “My Analysis” page, you will need to click on “Switch to 2022”.
If you have just created your account, you will automatically be assigned to a plan for 2022.
9/ I never declared anything, what should I do?
The profession of tax advisor is regulated and reserved to tax lawyers, having the exclusivity of the activity. To answer your questions, we can recommend you our tax lawyer.
Our tool supports crypto asset tax returns for the years 2019, 2020 and 2021, but not prior to 2018. The tax system has changed a lot since then.
Nevertheless, our tax lawyer specialized in digital assets (Alexandre Lourimi - firstname.lastname@example.org) can accompany you on this subject.
We would like to point out that it is likely that the French tax authorities will be less careful with “small portfolios” before 2019, as there was no specific tax regime for digital assets, especially if the taxpayer wants to comply with the French tax legislation from 2019 onwards.
10/ Do you offer personalized support?
We have a personalized offer to manage specific situations. If you are interested, please contact us at email@example.com and tell us about your situation so that we can answer your questions and present the product to you.
If you have any other questions, do not hesitate to contact us via the chat just at the bottom right of your screen! 💬
The Waltio team