Cryptocurrency should be taxed, France says

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Gains from cryptocurrency will be taxed by France to use as capital gains of movable property. They are bound to reduce the rates from up to 45% down to 19%.

The High Administrative Court of France early this year, was seized on behalf of several taxpayers who challenged the regimen that has been in force since 2014, related to taxing bitcoin and other digital market-related transactions.

The tax legislation will use gains from the sale of cryptocurrencies to be considered commercial and industrial profits, in case of normal and continuous activity. Taxpayers were subjected to different rates with this categorization, which could reach up to 45%.

The Council of State has moved to rule partially in favor of the claimants under the above case, as reported by French media Le Monde. The institution chose to reconsider the way gains coming from the sale of digital cpins are regulated and it seems now thay profits are made of “movable property.”

Because of this, they will be taxed with a flat rate of 19%, lower than the prior position, even if the Generalized Social Contribution (CSG) of up to 17.2% is added.

According to the Council of State, there would be “certain circumstances specific to the transaction of crypto assets which may imply that they fall under provisions relating to other categories of income”.

So if the capital gains came from activities other than cryptocurrency sales, like bitcoin mining, they would be considered as commercial and industrial profits under the previous legislation, regardless of whether or not the activity was occasional. Therefore, they will also be taxed a 45% rate.

The head of AMF, France’s stock, France’s stock market regulator Authorité des Marchés Financiers. But the overall attitude of the country has changed a number of times over the last few months. The Governor of the Bank of France was seen calling for a higher emphasis on crypto exchanges.

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