France to Cut Taxes on Cryptocurrency Trading
April 28, 2018
Retail cryptocurrency investors in France are about to receive tax breaks, that will allow them to breathe easier.
A French government body, Council of State, that expresses opinions on various issues and acts as a supreme court on administrative matters, announced on Thursday that profits from cryptocurrency trading should be considered as capital gains from movable property. La Monde reports, that the tax rate will be reduced as a result.
Under the current legislation, profits from cryptocurrency trading are considered industrial and commercial profits, while the profits from occasional transactions are considered non-commercial profit. It means that the tax rate is up to 45%, which is complemented by a generalized social contribution of 17.2%.
If cryptocurrency is going to be considered as movable poverty, then it would become a subject of a fixed tax rate of 19%, complemented by a generalized social contribution. La Monde added, that Council of State still considers profits some cryptocurrency-related operations as industrial and commercial profit. For example, cryptocurrency mining.