In 2022, 400 million euros of profits in cryptos were taxed in France

Tax law enforcement is one of the reasons governments around the world want to regulate cryptos. This would in fact allow them to benefit from part of the trillions that pass through it each year. France is getting there. Well… not so much.

€400 million in net crypto capital gains for 20,000 taxpayers

At the end of 2022, the French tax authorities have taxed around 400 million euros in net crypto income. According to information communicated this Monday, April 24 by BFMTV, this data was collected from some 20,000 French taxpayers.

Difficult to say whether this numbers trended downwards or upwards at the end of this period. In fact, tax data for the two previous years is not available. We know, however, that currently in France, nearly 10% of the population holds cryptos. 8% of the French population had one in 2022.

It should be noted that for most holders of digital assets, these are used for speculative purposes. In France, a declaration to the tax authorities is required by law each time a capital gain is realized in this context.

The latter is subject to a single flat-rate levy (PFU) or flat tax of 30%. A rate only required when all the crypto capital gains realized at the end of a fiscal year exceed 305 euros.

It is estimated on the basis of the PFU carried out in 2021 that the French tax authorities recovered around 120 million euros in taxes thanks to the crypto capital gains declared over the period. Three times nothing, compared to the taxes that the State should have actually collected.

A drop of water in the fed up of crypto income?

Chainalysis figures suggest that when it comes to tax reporting on crypto capital gains, French taxpayers are mostly bad students. A report produced by the company and covering the period 2021 details the crypto capital gains made that year.

These show 3.7 billion euros over the period. “With the 30% flat tax, the State would have had to collect 1.2 billion euros if the method of calculating this figure is in accordance with the French general tax code”, declared Pierre Morizot, boss of the Waltio company, which specializes in taxation.

Not sure if the trends will improve in 2023. This, when you know the ravages of the bear market among investors. Indeed, with the losses suffered by the latter, much fewer declarations of crypto income are expected at the end of this year.

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