Here’s some good news for citizens of France trading in cryptocurrencies – the government of France has reduced the tax on the income generated from cryptocurrency trade from 45% to a mere 19%. The tax would increase slightly, as a result of added generalized social contribution (GSC) but is expected to stay well away from 40%.
The Council of State, the highest court of administration in France, has determined that cryptocurrency profits are moveable property, which is the reason they should be charged lower tax rate. Prior to this, cryptocurrencies gais were considered commercial profits which led to a tax rate of 45%, which was obviously extremely high!
But, there are exceptions to this rule as well. For example, only the investment gains will be charged a tax rate of 19%. Profits earned by people mining bitcoins will continue to be taxed at the original income tax rate.
France in general is warming up to cryptocurrencies quite well. The head of AMF (France’s stock market regulator Authorité des Marchés Financiers) expressed his support for cryptocurrencies in the last months of 2017. Previously, the country as a whole has changed its opinion regarding cryptocurrencies quite a few times in the last six months. It remains to be seen what direction France will head in, but these are welcome changes!
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