France Eyes Lower Bitcoin Tax To Align With Other Assets

Nov 09, 2018 at 21:43

French regulators are lowering taxes imposed on the sale of Bitcoin and other cryptocurrencies, Reuters reported.

The move translates to imposing a 30 percent tax on net profits generated from crypto transactions, lower than the current 36.2 percent.

The new rate would match that of non-real estate assets.

For the recommendation to move toward legislation as soon as possible, it should be approved in the final update of the budget bill.

If adopted, cryptocurrency holder will have to pay the 30 percent capital gains tax starting January 1, 2019.

The proposed reduction is much higher than the what was earlier suggested. In April, regulators were looking at reducing the capital gains tax on Bitcoin from 45 percent to as low as 19 percent.

Capital gains tax is a levy on earnings a seller has gained from selling an asset.

As an example, buying a Bitcoin at $6,500 and selling it at $7,000 will earn you a profit of $500 – that amount is considered your capital gain, which will be taxed.

Several French officials have recently been aggressive in regulating and engaging in the cryptocurrency space.

In September this year, French regulators prided on their individual stance on crypto: to protect the country’s netizens from fraudulent ICOs, notwithstanding calls for a unified position among European countries.