Amateur cryptocurrency investors in France are currently stung heavily when it comes to tax day, but that is about to change, reports indicate.
The French Council of State, the body that advises the government on legal matters and acts as the supreme court for administrative matters, announced Thursday that profits arising from cryptocurrency sales should be considered as capital gains of “movable property” – a decision that will see the tax rate levied drop significantly, according to a report from Le Monde,
Currently, gains from the sale of cryptocurrency trading are normally considered “industrial and commercial profits” (BIC), while those from occasional transactions are treated as “non-commercial profits.”
This means that tax on crypto gains can be as high as 45 percent for higher-band taxpayers, and that’s also in addition to the country’s generalized social contribution (CSG) of 17.2 percent, the report says.
Classifying cryptos as movable property (as the name suggests, these are assets that are not fixed in place like buildings), however, brings a flat CGT liability of 19 percent, plus CSG.
Le Monde adds, however, that the Council of State said certain types of transaction may however “fall under provisions relating to other categories of income,” and that proceeds from cryptocurrency mining as well as commercial activities related to the technology will still be taxed at the BIC rate.
The move comes after several investors took a case to the supreme court over the harsh tax regime, according to the report.
Eiffel Tower image via Shutterstock
Disclosure Read More
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.