How to declare the capital gains made with your non-fungible tokens (NFT)?

For memory

 For some, the question arises of the taxation of NFTs.

A brief reminder of the definition of NFTs

NFT stands for “Non Fungible Tokens” or non-fungible tokens, in French. As their name suggests, they are crypto-assets that represent a non-fungible thing. In other words, each NFT is unique (much like a work of art). This is also a point that makes it possible to differentiate NFTs from crypto-currencies. They are both crypto-assets, but cryptocurrency is fungible, that is, two cryptocurrencies can be exchanged (much like a normal currency).

The NFT tax regime

Legal uncertainty

At present, the texts seem to want to apply to NFTs the same tax regime as that applicable to crypto-currencies.

However, the greatest authors and specialists in the matter believe that there is legal uncertainty on this subject. According to them, there are several tax regimes applicable to NFTs:

They recommend, in certain cases, subjecting the NFT to the tax regime of its underlying .

This solution of uncertainty has an advantage: a field of action (and interpretation) still rather broad. There is, a priori, no right or wrong answer.

However, there is also a drawback: legal uncertainty, and uncertainty as to the declaration and taxation of these assets.

In this case, you would need to analyze the nature of the underlying asset of your or your NFT and try to determine the resulting tax regime. The different applicable legal regimes are as follows:

The general regime applicable to capital gains from the sale of movable property (36.2%, after application of a 5% deduction per year of ownership),

The regime applicable to capital gains from the sale of works of art (6%),

The regime applicable to capital gains on the sale of securities (30%, without deduction for holding period).

Our advices

If, in 2021, you realized (occasionally) a capital gain on the sale of NFTs, we advise you, in general, to declare them according to the regime applicable to crypto-currencies.

Under this regime, your capital gain is taxable at the rate of 30% (12.8% income tax and 17.2% social security contributions). You cannot opt ​​for the progressive scale.

If the total amount of these capital gains does not exceed €305, the capital gain is exempt.

If you have made a capital loss, be aware that it cannot be carried over to the following years, nor charged to other capital gains on disposal.

In practice, if you realized capital gains from the sale of digital assets in 2021, you must:

File declaration no. 2086 ;

File declaration no. 3916 bis (if the account or wallet is opened abroad);

Submit declaration n°2042 C .

Moreover, in view of the legal uncertainty on this subject, we advise you to take special precautions in the way of declaring these gains.

If you have any questions, do not hesitate to contact us: we are at your disposal to answer them.