French General Tax Code
In forceI. - Subject to the provisions specific to professional profits, capital gains realised by natural persons domiciled for tax purposes in France within the meaning of Article 4 B, directly or through an intermediary, on the sale for consideration of digital assets mentioned in Article L. 54-10-1 of the Monetary and Financial Code or rights relating thereto are subject to income tax under the conditions set out in this article.
II. - A. - The provisions of I of this article do not apply, in respect of the year of exchange, to no-equity exchange transactions between digital assets defined in the same I or rights relating thereto.
B. - Persons carrying out disposals for which the sum of the prices, as defined in A of III, does not exceed 305 € during the tax year excluding the transactions mentioned in A of this II, are exempt.
III. - The gross capital gain or loss realised on the disposal of assets or rights mentioned in I is equal to the difference between, on the one hand, the disposal price and, on the other hand, the product of the total acquisition price of the entire portfolio of digital assets by the quotient of the disposal price over the total value of this portfolio.
A. - The transfer price to be used is the actual price received or the value of the consideration obtained by the transferor, where applicable including the balancing payment he received or reduced by the balancing payment he paid at the time of this transfer.
The transfer price is reduced, with supporting evidence, by the costs incurred by the transferor in connection with this transfer.
B. - The total acquisition price of the portfolio of digital assets is equal to the sum of the prices actually paid in legal tender for all acquisitions of digital assets or rights relating thereto made prior to the transfer and the value of each of the services and goods, other than digital assets or rights relating thereto remitted in exchanges that benefited from the tax deferral provided for in A of II, including any balancing payments made, remitted in consideration for digital assets or rights relating thereto prior to that same disposal.
In the event of a gratuitous acquisition, the acquisition price to be taken into account is the value used to determine gratuitous transfer duties or, failing that, the actual value of the digital assets or the rights relating thereto determined at the time they entered the assets of the transferor.
The total acquisition price determined by application of the first two paragraphs of this B is reduced by the sum of the fractions of initial capital contained in the value or price of each of the various transfers of digital assets or rights relating thereto, whether free of charge or for consideration, excluding exchanges that have benefited from the tax deferral provided for in A of II, previously carried out. Where one or more exchanges with a balancing payment received by the transferor have taken place prior to the taxable transfer, the total acquisition price is reduced by the amount of the balancing payments.
C. - The overall value of the portfolio of digital assets is equal to the sum of the values, valued at the time of the taxable disposal, of the various digital assets and related rights held by the transferor prior to making the disposal.
IV. - Gross capital losses incurred during a tax year in respect of disposals of assets or rights referred to in I, other than those falling within the scope of II, are set off exclusively against gross capital gains of the same nature realised in respect of that same year.
V. - A. - The income tax corresponding to the capital gains referred to in this article is paid by the individual who carries out, directly or through an intermediary, the disposal.
The taxpayers shall enter on the annual return provided for in article 170 the total amount of capital gains or losses realised in respect of taxable disposals during the year. They attach to this declaration a schedule conforming to a model drawn up by the administration, on which they mention and evaluate all the capital gains or losses realised on the occasion of each of the taxable disposals made during the year or the prices of each of the disposals exempted pursuant to B of II.
B. - A decree determines the reporting obligations incumbent on the taxpayers and interposed persons mentioned in I.
VI. - (Repealed).
