- France’s Council of State cut down tax from 45% to 19%.
- France declares that cryptocurrency is now a moveable property.
France: Report from Le Monde, a local news outlet, on Thursday 26th April revealed that France’s Council of State (Conseil d’Etat) has cut down the tax rate on crypto transactions from the initial 45 percent now to a flat rate of 19 percent.
The Conseil d’Etat stated that the change in tax rate is as a result of a new classification which separates Bitcoin transactions from both commercial or non-commercial activity:
“The sale of ‘bitcoins’ [fell under] the principle from the category of capital gains of movable property.”
However, earning from cryptocurrency mining are exempted from the 19 percent flat tax rate, such earning would instead be taxed as non-commercial profits, and income due to the professional activities involved, which will be taxed as industrial and commercial profits.
The news outlet added that Council’s decision to change the cryptocurrency tax rate resulted after the nation’s citizens made an appeal earlier this year to France’s highest regulatory body to change the regulations for cryptocurrency transactions, which was put in place since July 2014.
Since the beginning of this year, France has been working on its regulations for cryptocurrency transactions. Earlier this year, the country’s Minister of Economy launched a cryptocurrency task force to examine regulations. In March, the French government barred all investment firms from trading in cryptocurrencies until crypto regulations have been implemented.
More so, France’s financial market regulator was also reported in March to be considering legislation that would encourage the development of ICOs.