In France, lawmakers want to cut capital gains tax on crypto sales. The main intention is to lower the tax from 36.2% to 30%, allowing virtual currencies to be taxed in line with other assets. The information was released by Reuters a few days ago.
French Lawmakers Ease Crypto Taxes
France wants to reduce taxes on virtual currencies to be in line with other capital gains tax. The plan was backed by the Finance Commission in the French lower house of the parliament. Now, Bitcoin and crypto gains are taxed at 36.2%. Other forms of capital gains on non-real estate assets are at a flat rate of 30%, according to Reuters.
The amendment was made to the budget bill for 2019. Sales of crypto-assets such as Bitcoin (BTC) will be now subject to a 30% flat tax rate. In order to become law, the budget bill must be approved in its final version by the whole parliament.
As per LeMonde, crypto taxes reached a high of 45% for the wealthiest taxpayers in the country. With the latest decision taken by lawmakers, taxes paid by cryptocurrency traders will be much lower than what it was expected earlier this year.
France is working in order to become more competitive in the cryptocurrency landscape. This year, Emmanuel Macron, France’s president, launched the Action plan for Business Growth and Transformation (PACTE). With it, the intention is to make it easier for companies to operate in the European country.
Back in September, French lawmakers passed a law in which they set out guidelines for Initial Coin Offerings (ICOs). This was announced by the Finance Minister, Bruno Le Maire.
✅Article 26 adopté en commission #PACTE !
➡️Un cadre juridique des #ICO est créé. L’@AMF_actu pourra délivrer un visa aux acteurs respectant des critères de protection des épargnants
➡️Ce cadre juridique va attirer les innovateurs du monde entier #blockchain #DirectAN
— Bruno Le Maire (@BrunoLeMaire) September 12, 2018
With this regulation, the French financial regulator, the Authorité des Marchés Financiers (AMF) can issue permits related to Initial Coin Offerings in the country. However, these projects must provide guarantees for investors.
Initial Coin Offerings have been regulated in different countries in many ways. However, it has been difficult to create a common legal framework in different jurisdictions. China and South Korea, for example, completely banned Initial Coin Offerings. Other countries are more open to receiving investments from ICOs and other projects. Malta, for example, created a very flexible crypto and blockchain framework for companies to be installed on the Mediterranean island.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.