France Outlines Significant Tax Cut for Cryptocurrency

by Aziz Abdel-Qader
  • Bitcoin was trading near the $9,500 mark on Friday following the news‎.
France Outlines Significant Tax Cut for Cryptocurrency
Reuters, Emmanuel Macron, head of the political movement En Marche !, or Onwards !, and candidate for the 2017 French presidential election, celebrates after partial results in the first round of 2017 French presidential election, at the Parc des Expositions hall in Paris, France April 23, 2017.
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The French government has announced a tax reform plan Thursday, which would reduce the tax ‎rates on revenues generated by cryptocurrency transactions, and cut the high-band rate from ‎‎45 percent to 19 percent.‎

The tax reform announced by the French Council of State may just be an opening ‎bid of a long path, but it delivers an aggressive cut that cryptocurrency enthusiasts ‎have been clamoring for.‎

After adding contributions to the social welfare system, the new rate goes up to nearly ‎‎35 percent, which is still a 25 percent reduction of the original fees, according to a report from French outlet Le Monde.‎‎

The stimulative effects of the tax cuts come as France changed the classification of ‎Bitcoin and its ilk, which currently fall into the “moveable property” category, ‎meaning that it is subject the flat tax of 19 percent on capital gains. Before that, cryptocurrency gains ‎were considered “industrial and commercial profits” while occasional transactions ‎constituted as “non-commercial profits.”‎

Bitcoin was trading near the $9,500 mark on Friday following the news, as cryptocurrency ‎investors were optimistic that Regulation may become less stringent ahead.‎

Earlier in January, France's Finance Minister Bruno Le Maire debated cryptocurrency and said Germany and France will jointly push for global regulation during the ‎‎summit of the G20 in Argentina.‎

At the time, Le Maire told reporters that authorities “will ‎have a joint Franco-German ‎analysis of the risks linked to ‎bitcoin, regulation proposals and these will be ‎submitted ‎as a joint proposal to our G20 counterparts at the G20 ‎summit in ‎Argentina in March.”‎

The French government has announced a tax reform plan Thursday, which would reduce the tax ‎rates on revenues generated by cryptocurrency transactions, and cut the high-band rate from ‎‎45 percent to 19 percent.‎

The tax reform announced by the French Council of State may just be an opening ‎bid of a long path, but it delivers an aggressive cut that cryptocurrency enthusiasts ‎have been clamoring for.‎

After adding contributions to the social welfare system, the new rate goes up to nearly ‎‎35 percent, which is still a 25 percent reduction of the original fees, according to a report from French outlet Le Monde.‎‎

The stimulative effects of the tax cuts come as France changed the classification of ‎Bitcoin and its ilk, which currently fall into the “moveable property” category, ‎meaning that it is subject the flat tax of 19 percent on capital gains. Before that, cryptocurrency gains ‎were considered “industrial and commercial profits” while occasional transactions ‎constituted as “non-commercial profits.”‎

Bitcoin was trading near the $9,500 mark on Friday following the news, as cryptocurrency ‎investors were optimistic that Regulation may become less stringent ahead.‎

Earlier in January, France's Finance Minister Bruno Le Maire debated cryptocurrency and said Germany and France will jointly push for global regulation during the ‎‎summit of the G20 in Argentina.‎

At the time, Le Maire told reporters that authorities “will ‎have a joint Franco-German ‎analysis of the risks linked to ‎bitcoin, regulation proposals and these will be ‎submitted ‎as a joint proposal to our G20 counterparts at the G20 ‎summit in ‎Argentina in March.”‎

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