French According to the country’s tax body, taxpayers declared crypto trading profits worth some $442 million in the most recent tax year.
Per le figaroThe figure was “substantial” but “10 times less than the profit estimates made in 2021.”
The body based its claim on the number of people who disclosed their profits on tax returns.
However, the paper cited a Chainalysis report that claimed “over $4 billion in profit from crypto trading in France in 2021.”
The newspaper wrote:
“This figure is 10 times more than the amount declared to public finance authorities. In other words, most crypto holders are still evading taxes.”
Under French law, crypto trading profits are taxed at a “flat rate” of 30%.
Tax was launched in 2019.
French crypto trading on the rise?
The tax body informed that “20,000 tax households” declared the benefit in 2022 for the tax year of FY 2021.
The paper said the body “does not provide information on the proportion of this amount on which tax was levied”.
But, under the terms of the law, the newspaper wrote “30% will go directly to the state treasury.”
The law stipulates that only crypto-to-fiat trades are subject to capital gains tax.
Crypto-to-crypto trades do not need to be declared.
But in case of prolific traders, different taxation laws apply.
Individuals who are judged to “regularly” receive “profitable” crypto payments could be mandated to pay tax as if they were making “industrial and commercial profits”.
The media outlet claimed that the declared amount was “much lower than the capital gains estimated during the year.”
It attributed this to factors such as the fall in crypto prices.
Earlier this month, survey data showed One in 10 French people say they have cryptocurrency,
About 85% of respondents said they “had knowledge” about cryptocurrencies.
This represents an increase of almost 10% since a similar survey in 2022.