France cuts tax rates for retail cryptocurrency traders
Retail crypto traders in France are to receive a reduced tax rate, according to reports.
Currently, amateur investors are paying high levels of tax to the French government.
The French Council of State announced on Thursday that that tax situation in France is about to change.
The FCS is the government’s advising body regarding legal matters, acting as the supreme court for administrative undertakings.
According to the group’s announcement, profits from cryptocurrency sales should be considered as capital gains of “movable property.”
This decision that will see the tax rate drop significantly, according to a report from French outlet Le Monde.
Gains from the trading of cryptocurrencies in France currently fall into the “industrial and commercial profits” category.
While those profits from occasional transactions constitute as “non-commercial profits.”
For high-band taxpayers, this means cryptocurrency profits could be as high as 45 percent.
According to the report, France also an additional 17.2 percent fee for the country’s generalized social contribution (CSG).
Reclassifying cryptos as a movable property will class them as assets that are not permanently in place, like buildings.
This change, however, brings a flat CGT liability of 19 percent, plus the standard CSG.
Le Monde explains, however, that the Council of State says certain types of transaction may “fall under provisions relating to other categories of income.”
Profits from cryptocurrency mining, or proceeds from commercial activities related to the technology, will still fall under the BIC tax rate.
The move is in response to several investors taking a case to the supreme court.
The group is calling for a fresh look at the harsh tax regime, according to the report.
Tax Day Woes
Tax day deadlines have been bringing many woes in the crypto community of late.
The deadline of April 17 in the US was cited as a pivotable point for cryptocurrency values.
In the run-up to the deadline, many digital assets hit recent lows.
The current bull run sprung into life shortly after Tax Day, however.
Prices are rising steadily across the board since.
At the time of the press, Bitcoin is currently trading at around $9,300, according to the Coin Thud live price charts.