After stating in April 2018 that cryptocurrency taxes in France would be lowered, it appears that the government has settled on a figure.
Gains from the sale of cryptocurrencies were previously labeled as industrial and commercial profits under French tax law and therefore could have up to as much as 45% tax levied on them for larger users. With French social security contributions (CSG) currently standing at 17.2%, some wealthier crypto traders could have been paying a massive 62% in tax.
In April the Conseil-D’état, under new tax laws specifically aimed at Bitcoin had suggested setting the new crypto tax rate at 19%, which is the same rate applied to what the French call “movable property”, such as cars, jewelry, and patents. Bitcoin would fall into that same category.
However, the Finance Commission in France’s lower house of parliament revealed on Wednesday that its latest amendment to French taxation as it applies to cryptocurrency assets proposes a flat rate of 30%, equal to the current rate of French capital tax, from January of 2019.
The Bank of France proposed a ban earlier this year on investment companies to keep financial institutions from conducting business in the cryptocurrency market until the government could enact proper regulation. The Bank of France Governor Francois Villeroy de Galhau commented earlier this year that new laws were required to cover cryptocurrency exchanges, assuring investors who had previously been shocked when he commented:
“Bitcoin is in no way a currency or even a cryptocurrency. It is a speculative asset. Its value and extreme volatility have no economic basis, and they are nobody’s responsibility.”
The latest details coming from France’s lower house are sure to encourage investors, although original suggestions of a new rate of 19% proposed by the Conseil-D’état earlier in the year would have been far more warmly received by the industry.
The French aim is still geared towards establishing a more global regulatory network as digital currency is used globally, not simply in France. The country’s Finance Minister, Bruno Le Maire, has suggested that the G20 need to reach agreement on how Bitcoin could be regulated amongst the member countries.
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