The tax authority requires cryptocurrency holders to report their earnings at the same time as their other income in the annual return. Earnings made from digital assets are subject to “flat tax”, the single flat tax at the rate of 30%

For the 2021 declaration, tax residents in France must declare capital gains for year N-1, i.e. those realized from January 1, 2020. “The sole possession of cryptocurrency does not trigger the payment of a tax” explains Stéphanie Némarq-Attias, tax lawyer at CMS Francis Lefebvre, in the preamble. Therefore, only the gains made should be taken into account.
Bitcoins left on a digital wallet are not included in tax calculations. Moreover, simple exchanges between cryptocurrencies, for example between bitcoin and ether, are also not subject to taxation. “Contrary to exchanges for national currencies, goods or services, there is no taxation on exchanges between cryptocurrencies,” summarizes Stéphanie Némarq-Attias.
All sales, transfers or purchases of goods and services made with cryptocurrencies are subject to tax. “As soon as liquidity is released and cryptocurrencies are exchanged for money, the accrued capital gain becomes taxable” explains the tax lawyer. For a sale, the taxable gain represents the difference between the purchase price of a bitcoin and its sale price. However, taxpayers are exempt from capital gain tax when the sum of the transfer prices is less than 305 euros per household during the year