Tax For Cryptocurrency Owners May Be Reduced In France
The Finance Committee of the National Assembly of France approved the amendment to the draft law on the 2019 state budget, according to which the profit from bitcoin and other digital assets will be considered as capital gains, Le Figaro reports.
This bill will be put to the vote at the regular meeting of the French Parliament. If the deputies of the upper house, the Senate, approve the amendment, then, from the beginning of January, the tax will be reduced from 36.2% to 30% for persons who trade crypto assets. Currently, these revenues are taxed at a fixed rate of 19%, and the social security tax of 17.2% is added here.
The fixed tax will be applied to the revenues from the sale of crypto assets, converted into fiat currency or used as a means of payment for the purchase of goods or services, as stated in the amendment.
If adopted, the law will simplify the life of cryptocurrency owners since they will need to pay less tax, Eric Woerth, the Finance Committee chair, claimed. Today, there are three tax regimes in the country — for one-time and permanent transactions, and for persons involved in mining.
In 2018, the French had already taken a number of initiatives on the crypto sphere: a working group was created at the beginning of the year to develop measures for the regulation of crypto assets. In the spring, the State Council first expressed an opinion on the reduction of the tax on crypto transactions, and in November, the country's parliament adopted regulations governing the organization of ICO.