How to Report Staking Rewards in France: A Complete Tax Guide for 2024

Understanding Staking Rewards and French Tax Obligations

Staking cryptocurrencies like Ethereum, Cardano, or Solana allows you to earn passive income by participating in blockchain validation. In France, these rewards aren’t “free money” – they’re taxable income. The French Tax Authority (Direction Générale des Finances Publiques) treats staking rewards as either miscellaneous income (BNC) or business income (BIC), depending on your activity’s regularity and scale. Failure to report accurately can trigger audits, penalties up to 80% of owed tax, or criminal charges. This guide simplifies France’s complex crypto tax rules to keep you compliant.

How France Taxes Staking Rewards: Key Principles

French tax law distinguishes between occasional and professional staking activities:

• Non-professional stakers: Rewards are taxed as BNC (Bénéfices Non Commerciaux) at your marginal income tax rate (up to 45%) + 17.2% social charges.
• Professional stakers: If staking is frequent, organized, and profit-driven, rewards qualify as BIC (Bénéfices Industriels et Commerciaux), taxed similarly but with deductible expenses (e.g., hardware, electricity).
• Double taxation risk: When you later sell staked assets, capital gains tax applies on price increases since reward receipt.

Critical timing rule: Tax is due when rewards are received and controllable, not when sold. Value is calculated in euros at the moment of receipt using exchange rates from platforms like CoinMarketCap.

Step-by-Step Guide to Reporting Staking Rewards

1. Track and Calculate Reward Values

• Use crypto tax software (e.g., Koinly, CoinTracking) or export exchange reports.
• Record:
  – Date of each reward
  – Amount in cryptocurrency
  – EUR value at receipt (use historical price data)

2. Classify Your Staking Activity

• BNC (Form 2042 C PRO): For casual stakers with rewards under €70,000/year or irregular activity.
• BIC (Form 2031): For professional stakers exceeding €70,000/year with organized operations.

3. Complete Tax Forms

• BNC filers: Report total annual reward value in Box 5HQ of Form 2042 C PRO.
• BIC filers: File Form 2031 detailing income/expenses. Attach Schedule 2033-A for crypto-specific disclosures.
• Both must declare holdings in the Déclaration des Comptes Numériques (digital assets form).

4. Pay Taxes and Social Charges

Taxes are due when submitting your annual return (typically May). Calculate:
Total Tax = (Reward Value × Income Tax Rate) + (Reward Value × 17.2% Social Charges)

Common Reporting Mistakes to Avoid

• Ignoring small rewards: Even €10 in staking income must be declared.
• Using incorrect valuation: Always convert to EUR at receipt date – not when staked or sold.
• Mixing wallets/exchanges: Consolidate all reward sources to avoid underreporting.
• Overlooking future capital gains: When selling staked coins, track original EUR cost basis (reward value at receipt).

Frequently Asked Questions (FAQ)

Are staking rewards always taxable in France?

Yes. The French Tax Authority explicitly states crypto rewards constitute taxable income upon receipt, regardless of whether you sell them.

Can I deduct staking-related expenses?

Only if classified as BIC (professional activity). Deductibles include hardware, electricity, and subscription fees. BNC filers get no expense deductions.

What if I stake via a foreign platform?

French residents must declare worldwide income. Foreign platforms may not issue French tax documents – you’re responsible for tracking and reporting.

How does staking affect wealth tax (IFI)?

Staked assets held on January 1st count toward IFI calculations if your total taxable assets exceed €1.3 million. Rewards themselves don’t trigger IFI.

What proof should I keep?

Retain for 6 years:
– Transaction histories
– Exchange/wallet statements
– EUR conversion records
– Expense receipts (for BIC)

Can I use the 30% flat tax (PFU) on staking rewards?

No. The 30% flat tax applies only to capital gains from crypto sales, not staking income.

Disclaimer: Tax laws evolve. Consult a French crypto tax expert for personalized advice. This guide reflects rules as of 2024.