2022 Cryptocurrency Tax Return Guide

This article was written in collaboration with Waltio †More information user manual†

This guide is brought to you by the tax assistant Waltioand is intended for private individuals who invest incidentally and does not cover the tax applicable to professional traders. The assessment of the quality of an occasional or regular trader depends on the frequency, the tools, the amounts invested and the profits made.

Tax calendar dates to remember

The first important thing to know to declare your cryptocurrencies on time and not get fines, it’s the date.

Tax filing deadlines vary depending on where you live. When the online declaration service opens to everyone on April 7, 2022, the deadlines will differ per department.

These are the dates of the 2022 fiscal calendar †

• Apr 7, 2022 : opening of the online declaration service, on the website impots.gouv.fr †
• May 19, 2022 : deadline for filing the tax return, on paper;
• May 25, 2022 : deadline for online income declaration in zone 1 (departments 01 to 19 and foreign residents);
• May 31 : deadline for online income declaration in zone 2 (departments 20 to 54);
• June 7, 2022 : deadline for online income declaration in zone 3 (division 55 to 976).

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What are your tax obligations?

You have two essential tax obligations.

• an obligation to declare your taxable transactions (= sale of a cryptocurrency for legal tender or purchase of a good/service) as well as your taxable capital gains or losses on digital assets. This obligation is carried out via form n°2086;
• an obligation to report your digital asset accounts held, closed or opened abroad during the year 2021. This obligation is fulfilled via form n°3916-BIS. Please note that you do not need to enter the amounts in your accounts.

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What are the risks of not reporting?

The absence of an omission or a declaration error can have major consequences, both in terms of tax and even criminal law.

The tax consequences

In case of omission or inaccuracy in your declaration, your taxes can be increased by 10%† However, the increase increases to 80% of the amounts owed if the tax authorities provide proof that you have committed deliberate fraud.

The criminal consequences

If you are sanctioned for tax evasion, you risk a fine of up to 3 million euros and 7 years in prison.

We can only recommend to all history of your transactions to check your accounts.

Which income and transactions do you have to take into account?

The calculation of capital gains realized on digital assets is: complicated and time consuming, it requires you to know exactly the total value of your portfolio (all the sums of all your accounts) at the time of making a sale.

Cryptocurrencies obtained through tools such as play-to-earn, staking or lending should also be considered and included in the total value of your portfolio.

You will have understood, there is enough to tear your hair out or be desperate for the magnitude of the work…

Do not panic, help with tax returns Waltio allows you, regardless of your profile, to take into account all your activities by connecting your accounts via API and by supporting more than 100 platforms and complex operations. Waltio will provide you tax documents to meet your tax obligations†

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