Pursuant to a new Article 1649 bis C of the French General Tax Code (Code général des impôts, CGI), individuals, associations and non-commercial companies domiciled or established in France are required to declare, together with their income or profits tax return, the references of the digital asset accounts opened, held, used or closed with businesses, legal entities, institutions or bodies established abroad. Our tax law firm can prepare these declarations.
Failure to declare is penalised by a fine of €750 per undeclared account, or €125 per omission or inaccuracy, up to a limit of €10,000 per declaration. These amounts of €750 and €125 are increased to €1,500 and €250 respectively where the value of the accounts exceeds €50,000 at any time during the year covered by this reporting obligation.
The accounts to be declared under Article 1649 bis C of the French General Tax Code are those opened with any person governed by private or public law that habitually receives digital assets on deposit.
Individuals attach the account declaration to their annual income tax return.
Each digital asset account for private use, professional use, or both private and professional use must be listed separately.
Associations and non-commercial companies attach their digital asset account declaration to their annual income or profits tax return.
The account declaration covers the digital asset account(s) opened, held, used or closed during the year or financial year by the declarant, any member of their tax household (foyer fiscal) or any person attached to that household.
An account is deemed to be held where the person is its holder, joint holder, beneficial owner or economic beneficiary.
An account is deemed to have been used where the person has carried out at least one credit or debit transaction during the period covered by the declaration, whether as account holder or acting under a power of attorney, either for themselves or on behalf of a person having resident status.
Our tax law firm can assist you.
