Three profiles
When repatriating proceeds from the sale of cryptoassets to a bank, banks are particularly cautious. “They are attentive to amounts coming from abroad and if these sums come from cryptoasset platforms, they will more quickly ask questions about the origin of the initial deposits on these platforms. They will also inquire about all the transactions carried out to ensure that the sums repatriated actually come from realized capital gains. They also look at whether the tax regime applied to these sums has been respected.adds Baptistin Alaime.
gullIn general, the ruling system considers that investing more than 20 to 25% of one’s movable assets in cryptos is not reasonable and amounts to speculation.”
In terms of taxation of personal property income, the administration distinguishes between three profiles: professionals, speculators and “good father” investors.
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The good father of a family who invests reasonably in this type of assets will be exempt from tax on the capital gains made. Speculators will be taxed at a rate of 33% on the proceeds of capital gains made.
Three criteria
But what distinguishes the reasonable investor from the speculator? “Three criteria are taken into account to distinguish the speculator. First there is the amount of money invested. In general, the ruling system considers that investing more than 20 to 25% of one’s movable assets in cryptos is not reasonable and amounts to speculation. It also looks at the frequency of operations. The more buying and selling there is, the more these operations will be seen as speculation. Then, the duration between purchases and sales will be analyzed”notes Baptistin Alaime.
-gull“People who buy and sell on these platforms sometimes move from one status to another without realizing it.”
Please note that there are no fixed criteria for classifying an investor as a speculator.
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As for professionals, these are people who have made trading on these platforms a source of recurring income. In this case, income will be taxed at the rate applied to professional income and social security contributions will be due.
“People who buy and sell on these platforms sometimes move from one status to another without realizing it. They start with small amounts and, over time, can acquire speculator status without paying taxes. In this case, it will be necessary to request regularization.”warns Baptistin Alaime.
