## Introduction to Airdrop Taxation in France
Cryptocurrency airdrops—free distributions of tokens—are considered taxable income by French authorities. As France tightens crypto regulations, failing to report airdrop earnings can lead to penalties. This guide explains how to legally declare airdrop income under French tax laws, whether you’re a casual recipient or active trader.
## Understanding Airdrop Income Under French Law
France’s General Tax Code categorizes crypto airdrops as “miscellaneous income” (revenus divers) when received without direct effort. Key classifications include:
– **Non-trading income**: Airdrops acquired passively (e.g., for holding another cryptocurrency)
– **Business income**: If received through habitual trading or promotional activities
– **Barter transactions**: When airdrops require minor tasks (e.g., social media shares)
Tax rates vary:
– Standard miscellaneous income: Flat 12.8% + 17.2% social charges = 30% total
– Business income: Integrated into annual revenue, taxed at progressive income tax rates (up to 45%) plus social charges
## Step-by-Step Guide to Reporting Airdrops
### 1. Calculate Your Airdrop Value
– Convert tokens to euros using exchange rates at receipt time
– Use platforms like CoinMarketCap for historical pricing
### 2. Complete Tax Form 2042 C
– Report under section “Revenus divers” (Box 8TK)
– Include total euro value of all airdrops received in the tax year
### 3. File Social Charges
– Submit Form 2086 for social contributions (prélèvements sociaux)
– Payable even if no income tax is due
### 4. Special Cases
– **Business income**: Use Form 2031 for professional crypto activities
– **Airdrops sold later**: Capital gains reported separately via Form 2086
## Common Reporting Mistakes to Avoid
– **Ignoring small airdrops**: All earnings must be declared, regardless of value
– **Incorrect valuation**: Using current prices instead of receipt-date rates
– **Missing deadlines**: Annual declarations due in May for paper forms, June online
– **Omitting social charges**: 17.2% levy applies even if below income tax thresholds
## Essential Record-Keeping Practices
Maintain these documents for 6 years:
– Dates and values of all airdrop receipts
– Wallet addresses and transaction IDs
– Screenshots of airdrop task requirements
– Exchange records showing valuation methods
## FAQ: Airdrop Taxation in France
### 1. Are NFT airdrops taxable?
Yes. NFTs are treated like crypto assets—valued at receipt and subject to income tax + social charges.
### 2. What if I received airdrops worth under €5?
No minimum threshold exists. All airdrops must be declared, though penalties for minor omissions may be waived.
### 3. How are DeFi airdrops handled?
Identical to standard token distributions. Value is locked at claim date, not when tokens become tradable.
### 4. Can losses from airdropped tokens offset gains?
Only if sold at a loss. Unrealized losses aren’t deductible, but capital losses upon disposal can offset crypto gains.
## Final Considerations
France’s tax authority (DGFiP) actively tracks crypto transactions through 2024’s new KYC rules. Consult a French tax professional if handling complex cases like yield farming airdrops or business-scale distributions. Accurate reporting avoids audits and penalties up to 80% of undeclared amounts.
