Bitcoin and crypto: change in taxation on capital gains from January 1, 2023

The tax rules concerning capital gains in the cryptocurrency sector are changing from January 1, 2023. The boundary between occasional seller and habitual seller was too blurred, we are now talking about retail investors and professional investors. These change with the passage of the tax regime.

bitcoin taxation
Credit: Kanchanara / Unsplash

Passed a year ago, a reform on the taxation of capital gains made with cryptocurrencies comes into force from January 1, 2023. This is based on the distinction between retail investors and professional investors, and removes the notions of occasional seller and regular seller to try to reduce disputes.

Occasional sellers are therefore replaced by individual investors. In this case, the capital gains made in the context of the management of private assets are taxed at 12.8%, not counting social security contributions, which amount to 17.2%. It should be noted that taxpayers have the possibility of opting instead for the progressive scale of income tax, as for the taxation of capital gains on the sale of securities, which may in some cases be more advantageous.

Professional cryptocurrency investors subject to the BNC regime instead of the BIC

Unlike the old system, the frequency of transactions does not affect the classification as a private or professional investor. A professional investor will be considered to be a person who very regularly carries out sophisticated transactions and uses the same tools and techniques as professional traders. This type of investor then benefits from the same tax regime as individuals who mine cryptocurrency or stock market professionals.

This means that capital gains realized by professional cryptocurrency investors are subject to the progressive tax schedule of the non-commercial profits (BNC) category, and not industrial and commercial profits (BIC), as was the case. case before.

The French tax authorities especially hope that the adoption of this new tax system will make it possible to better distinguish the types of investors, to clarify the statutes and to avoid imbroglios and disputes between taxpayers and the administration by drawing up a border less prone to the interpretation between the different cases.

Source : What to choose

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