France has more than halved its cryptocurrency income tax rate on capital gains, incentivizing citizens to invest and even take some profits in the market.
The French Council of State has decided to change the classification of cryptocurrency capital gains, thereby lowering the tax rate from as high as 45% to a flat rate of 19%, a French online publication revealed. With the added generalized social contribution (GSC) for most incomes, the tax rate would rise but still falls well below the 40% threshold.
The revision couldn’t come at a better time for cryptocurrency investors, with bitcoin trading comfortably above $9,000 and the other top 10 coins also in the green today.
Source: Coin Market Cap
France’s highest court for administration, the Council of State, determined that cryptocurrency profits are considered “moveable property” and therefore subject to a lower tax rate than had previously been imposed, rewriting rules that had been in place since 2014.
Prior to the ruling, cryptocurrency gains were identified as either industrial and commercial profits or non-commercial profits, the local French report explained. Under this classification system, the capital gains tax for cryptocurrencies was 45% at the high end for residents in the highest tax bracket.
With the new classification as “movable property,” cryptocurrency profits become more akin to assets that can be transported, such as vehicles, planes and precious metals as well as intellectual property. This category attaches a more attractive flat 19% tax rate for transferring cryptocurrencies.
Before you pack your bags and head for France, there are some exceptions to the new rule. For instance, profits generated by the process of bitcoin mining remain subject to the original tax rate. The lower rate is specifically designed for investment gains.
French Policy
France Finance Minister Bruno Le Maire was one of the officials to call for cryptocurrencies to be on the agenda at the G20 meeting held earlier this year. Le Maire has grown progressively accepting of bitcoin and other digital currencies seemingly in light of the country’s leadership position for fintech more broadly.
He intends for France to take the lead with regulation in what he recently described as the “cryptocurrency revolution” and for the country to be a hotbed for blockchain innovation including licensed and non-licensed ICOs.
As CCN previously reported, French President Emmanuel Macron appears to have embraced bitcoin, as evidenced by a photo of him holding a bitcoin hardware wallet.
Macron holding a Ledger Blue bitcoin hardware wallet.
Last year, France gave the green light to banks to support trading of unlisted securities using blockchain technology.
Featured image from Shutterstock.
Hello,
Not indicating that the content you post including translations, spun, or re-written articles are not your original work could be seen as plagiarism.
These are some tips on how to share content and add value:
Repeated plagiarized posts are considered spam. Spam is discouraged by the community, and may result in action from the cheetah bot.
If you are actually the original author, please do reply to let us know!
More Info: Abuse Guide - 2017.
If you reply to this comment directly, we may not notice your response.
It is recommended to contact us in our Discord Channel, instead.
Thank you.
This is very good news for people in France...
Thanks for sharing this post.
Hi! I am a robot. I just upvoted you! I found similar content that readers might be interested in:
http://gesellberg.com/en/%d1%84%d1%80%d0%b0%d0%bd%d1%86%d1%96%d1%8f-%d1%81%d0%ba%d0%be%d1%80%d0%be%d1%87%d1%83%d1%94-%d1%81%d1%82%d0%b0%d0%b2%d0%ba%d1%83-%d0%bf%d0%be%d0%b4%d0%b0%d1%82%d0%ba%d1%83-%d0%bd%d0%b0-%d0%bf%d1%80/
As a follower of @followforupvotes this post has been randomly selected and upvoted! Enjoy your upvote and have a great day!
You got a 0.40% upvote from @emperorofnaps courtesy of @bdmamun29!
Want to promote your posts too? Send 0.05+ SBD or STEEM to @emperorofnaps to receive a share of a full upvote every 2.4 hours...Then go relax and take a nap!
This post has received a 7.66% upvote from @msp-bidbot thanks to: @bdmamun29. Delegate SP to this public bot and get paid daily: 50SP, 100SP, 250SP, 500SP, 1000SP, 5000SP Don't delegate so much that you have less than 50SP left on your account.