French Lawmakers Decreases Crypto Tax by 6 Percent
November 9, 2018 1:00 pm
French lawmakers have done minor changes to the 2019th budget bill which will decrease capital gains tax on Bitcoin sales to 30 percent from 36.2 percent. This would make digital currency transactions in line with other non-real estate assets that are taxed at a flat rate of 30 percent.
According to the report, the budget amendment was adopted by a finance commission in France’s lower house of parliament. But this needs to be approved in the final version of the budget bill by the broader parliament to become law. If approved, the new cryptocurrency tax rules will be followed from January.
The cryptocurrency taxes in Europe’s third largest economy has reached 45 percent. In April, the Council of State said that gains generated from cryptocurrencies needs be considered as capital gains of movable property. This meant a particular slash in the tax rate, except for earnings from cryptocurrency mining. The mining procedure is taxed as non-commercial profits and income resulting from the professional activity that is taxed as industrial and commercial profits.
Emmanuel Macron, the President, France wants to transform the country into a haven for business which includes the business of cryptocurrency. At the beginning of the year, Macron announced the Action Plan for Business Growth and Transformation (PACTE). This plan aims to make it easy for companies to operate in France, and to lay out legal guidelines for fundraising via ICOs.
As mentioned above, the French Council of State announced that profits raised from cryptocurrencies’ sales must be counted as capital gains of “movable property.”
The report said:
“Currently, gains from the sale of cryptocurrency trading are normally considered Industrial and Commercial Profits (BIC), while those from occasional transactions are treated as non-commercial profits.”