- France’s National Assembly has approved a proposal requiring taxpayers to report self-custodied cryptocurrency holdings worth at least €100,000 to tax authorities.
- The reporting threshold will be calculated on December 31 of each tax year, but the proposal must become part of the final 2027 Finance Bill to take effect.
- Lawmakers have also approved a separate proposal to tax certain crypto-to-stablecoin conversions, while rejecting an exemption for small crypto payments.
France Moves To Enforce More Tax Reporting For Crypto Investors
France’s National Assembly has passed an amendment requiring individuals to declare any self-custodied crypto assets worth €100,000 or more to tax authorities. The amendment, which received 150 yes votes, 44 no votes and 8 abstentions, was passed on Tuesday as part of the country’s proposed 2027 Finance Bill.
Source: assemblee-nationale.fr
This will require individuals to declare the value of their self-custodied crypto assets on December 31 of the tax year. This will make it easier for France to gain more transparency over crypto ownership.
Self-custodied crypto refers to digital assets that are stored by the individual themselves in their own wallet. This amendment proposes that any individuals whose self-custodied crypto assets exceed this amount will need to declare them.
This amendment however still needs to be passed into law.
French National Assembly Rejects Proposal To Tax Small Crypto Payments
The French National Assembly has also rejected an amendment proposing to not tax small crypto payments. The amendment would mean that individuals will not have to pay tax on any capital gains from crypto payments if they total less than €1,000 in the tax year. The amendment received 69 no votes and 14 yes votes.
There were two other amendments that have previously been rejected by lawmakers. These amendments would mean that individuals would have to pay exit taxes on any unrealized crypto capital gains if they change their tax residency abroad.
However, another amendment was approved by the Assembly on October 16. This amendment would mean that any capital gains made from converting cryptocurrencies into certain stablecoins will be taxed. This applies to stablecoins that are categorized as electronic money tokens under European Union regulations. This also needs to be included in the final legislation.
Overall, this amendment is part of a larger conversation around the budget in France. The National Assembly needs to finish the first reading of the 2027 Finance Bill by November 17. This will then be debated by the Senate from November 20.
The Assembly has already delayed voting on the revenue section of the budget twice. In fact, according to Faustine Fleuret, global head of public affairs at lending protocol Morpho, it is likely that this section will be rejected. This puts the whole budget bill at risk, including the amendments that have been approved. This means the final result will be important for crypto investors.
If the amendment is passed into law, France will have more information on large self-custodied crypto. It also shows governments are increasingly looking to include crypto ownership and transactions in their tax reporting.
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