In the latest news, French Council of State plans cutting crypto taxation. According to one of the local media reports, the classification of cryptocurrencies as the movable property will bring a flat CGT liability of 19 percent along with CSG.
30 April, AtoZ Markers – Reportedly, novice cryptocurrency investors in France are presently hit by the tax obligations. The French Council of State is the government body that is responsible for advising on legal matters and acts as the supreme court for administrative matters.
French Council of State Plans Cutting Crypto Taxation
This Thursday, the French Council of State, has announced that profits resulting from cryptocurrency sales should be regarded as capital gains of “movable property”. This decision will make the tax rate decrease significantly.
Now, gains from cryptocurrency trading are considered as “industrial and commercial profits” (BIC) in France. Those from occasional transactions are regarded as “non-commercial profits.”
This implies that tax on cryptocurrency gains can get as high as 45 percent for the higher-band taxpayers. This is in addition to the country’s widespread social contribution (CSG) at 17,2 percent.
According to the local media report, the classification of cryptocurrencies as the movable property will bring a flat CGT liability of 19 percent along with CSG.
France Cryptocurrency Regulations
The local reports state that the Council of State noted that certain types of transactions might “fall under provisions relating to other categories of income.” The proceeds from cryptocurrency mining and commercial activities linked to the Blockchain will be taxed as BIC rate.
This decision appears following the case that was taken by several investors to the supreme court in relation to the harsh tax framework.
Earlier last week, the finance minister of France, Bruno Le Maire, has shared his opinion in regards to the Blockchain and cryptocurrency development efforts. He has earlier ordered Jean-Pierre Landau to propose an appropriate legal framework. At the beginning of last week, Bruno Le Maire has published an op-ed that aims to describe the government’s embrace of FinTech and Blockchain technology. He has stated:
“ benevolent about the potential and opportunities of the blockchain, we are also cautious. Supporting innovation does not preclude measuring the risks it brings.”
Yet, the finance minister has expressed surprising passion. He has added:
“Let’s not be mere spectators, but become actors in this revolution.”
He has also indicated his intention for France to take over a leading role in this flourishing sector.
Think we missed something? Let us know in the comments section below.