France has applied cryptocurrency income tax rate on capital gains. It is motivating citizens to invest and take some profits in the market. The French Council of State has settled to alter the classification of cryptocurrency capital gains.
According to a French online publication, it lowers the tax rate from as high as 45% to a flat rate of 19%. The state is adding generalized social contribution (GSC) for the income. The tax rate is increased and falls below 40%.
The tax rate on cryptocurrencies.
The revised rate couldn’t come better at the time for cryptocurrency investors. The Bitcoin trading is above $9,000 and the other top 10 coins are in green for today.
The Council of state, France’s highest court for administration has resolute the cryptocurrency profits. This profit is considered as “moveable property” and is subjected to a lower tax rate which was imposed previously and these rules were rewritten in the place of 2014.
The local French report elaborated that before ruling, cryptocurrency profits were determined as either industrial and commercial profits or non-commercial profits. This classification system has categorized the capital gains tax for cryptocurrencies at the rate of 45% for residents in the highest tax strategy.
Classification of crypto assets
The new classification “moveable property” has accumulated cryptocurrency profits to assets which can be transported. The transportation includes vehicles, planes and other precious metals and known as intellectual property. The classification affixes attractive flat 19% tax rate for transferring cryptocurrencies.
The state has specified certain exceptions to the new rules. For example, profits accumulated by the method of bitcoin mining are subjected to the original tax rate. The lower rate is initiated for gaining investments.
Bruno Le Maire, Finance Minister of France is one of the officials to address digital currency on the agenda at G20 meeting that took place this year. Le Maire is rapidly accepting bitcoin and other digital currencies to light up country’s leadership position for fintech.
According to CCN previous report, Emmanuel Macron, French President emerges to accept bitcoin. This fact is been evidenced by a picture of Minister surfacing a bitcoin hardware wallet. Last year, France gave the green light to the banks to support the trading of unlisted securities utilizing blockchain technology.
The country is becoming a focal point for blockchain innovation which includes licensed and non-licensed ICOs. Bruno further predicts that France is taking the lead in regulation which was recently prescribed as cryptocurrency revolution. France is moving forward to explore the usage of cryptocurrencies and expand the trade.
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Image Source:- France