Relief In Crypto Taxation: France Brings Crypto Taxes Down To 19%

[Divinityxd]

The French Council of State now considers the profits generated by cryptocurrencies as capital gains of movable property that will be taxable at a flat rate of 19 percent instead of the previous 45 percent rate.

Continue reading: https://coingape.com/relief-in-crypto-taxation-france-brings-crypto-taxes-down-to-19/

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[rayk]

45% percentage taxation wow! that is still wrong but at least better compared to 45% I think cryptocurrencies especially bitcoin should be evaluated as currency not property.

[Doge dealer]

this is yet another indication that the world governments have realized that crypto currencies has an important role to play in world finances, its clear from this post that this downward movement in taxation is geared towards making crypto investments more friendly , it might even be taken to mean that they are encouraging investments because by reducing taxes you are making the profit margin bigger for the investor which would be a plus to him to invest more and make more money, which is also true for the government because by reducing the tax levels he will encourage more investments and so collect more taxes.

[Dapper]

I wonder how much of that they will collect?   In Singapore, it's 0%.   And not only that, once you convert to fiat, there is again ZERO income tax on interest income (a few rules there, but there are still plenty of choices of the types of accounts that produce tax free interest revenue).   It's one of the true 'Easy Streets' of the world.    Well, easy once you make it.... you do still need to find a way to move on up like George and Wheezy first.  

[BQ]

That's great news! I hope this happens in more countries.
US taxes each single transaction, even crypto to crypto?
that's absurd.

I hope other European countries will follow at least, otherwise, there might be a risk of people actually leaving for more crypto-friendly countries!

[HabBear]

Great news!

And it's about time France got it right - income from investment profits is different from income achieved from employment.

45% sounds high for an income tax bracket but it depends on what the income threshold is for that bracket. 19% for capital gains tax is in the zone of fair.

[flag39]

How are they going to calculate the tax. The only moment I will show that I have cryptocurrency is when I convert it to fiat through a bank.
Are they going to force all crypto exchanges to tax every account?
This will effect everyday traders and it will slow the market. 19% plus other fees, and do they consider when a trader loses?

[5ensei]

19% is still high but better than 45%, no-one will trade in france at that tax rate. This is a positive sign that G8 countries are embracing crypto trading and realise that if they make it undesirable then they will simply move to Malta who will benefit from the business taxes

[RodeoX]

For comparison the top overall cap gains tax rates in the US range from 25% to 33%. Look to find your state here:
https://taxfoundation.org/how-high-are-capital-gains-tax-rates-your-state

Fed rate can range from 0% -20% and states all have their own rules. This is the reason I am moving to a new state next year.

[gotminer]

and do they consider when a trader loses?

Yes.  It's called a capital lose.

[RodeoX]

How are they going to calculate the tax. The only moment I will show that I have cryptocurrency is when I convert it to fiat through a bank.
Are they going to force all crypto exchanges to tax every account?
This will effect everyday traders and it will slow the market. 19% plus other fees, and do they consider when a trader loses?

In the US all exchanges are required to turn over records. They are in a money service business and this is not an option, it is required.  It will not slow the market, on the contrary. It was, in part, regulation that led to the latest rally.

For actual traders this is completely normal. I trade stocks, bonds, real estate, metals, etc. and they all come with cap gain taxes. Bitcoin is fair money, not free money.

[nsasuiteb]

%19 is very high for me, I would probably move to singapore, there are probably many other countries tax free on crypto which I don't know. But that decrease shows that the government changed its ideas about crypto.

[francis2]

I wonder how much of that they will collect?   In Singapore, it's 0%.   And not only that, once you convert to fiat, there is again ZERO income tax on interest income (a few rules there, but there are still plenty of choices of the types of accounts that produce tax free interest revenue).   It's one of the true 'Easy Streets' of the world.    Well, easy once you make it.... you do still need to find a way to move on up like George and Wheezy first.  

I suppose that they are going to collect a very low amount of money, there are simply not many people that they can target with that tax, there are people that earn a few dollars with cryptocurrencies but you're not going to concentrate on them, and there are also those that earn a fortune with it but those that did that can move to a different country and pay no taxes there.

[franky1]

How are they going to calculate the tax. The only moment I will show that I have cryptocurrency is when I convert it to fiat through a bank.
Are they going to force all crypto exchanges to tax every account?
This will effect everyday traders and it will slow the market. 19% plus other fees, and do they consider when a trader loses?

its not french resident profit until its in your french resident bank account

just remember though if it was bought at Euro 8k and you cash out at Euro 9k .. although you have Euro 9k arriving in your bank account.. the 'gains' is only Euro 1k

[hosseinimr93]

It's a great news not only for France citizens, but also for all the people involved in cryptocurrecies. The news is the sign of accepting bitcoin France. France can play an important rule as one the most developed countries.

[franky1]

It's a great news not only for France citizens, but also for all the people involved in cryptocurrecies. The news is the sign of accepting bitcoin France. France can play an important rule as one the most developed countries.

its not really about bitcoin at all.. its just ensuring people pay tax on euro's that enter their bank account

[bitart]

There's no need to look outside Europte to find 0% tax on crypto, it's Germany, the neighbour of France has a really different tax policy on cryptos. But to be positive, it's a good decision from France to decrease the taxes on cryptos. Somewhere I have read that it's an EU policy what Germany has implemented, so all of the EU members would have to implement it sooner or later, but we need to wait for that...

[Meysa_richa]

That's a pretty good thing if it's applied tax, and it can give or increase state income with the tax crypto, and hopefully useful for the community a lot.

[dothebeats]

I wonder how good are the benefits in France seeing that the taxation could rise up to 45%? That seems to be a pretty aggressive tax implementation and could scare potential businesses should they consider moving into France. Anyway, it's good that the government have decided that they need to do some cuts in crypto taxation. I for one think that taxes are good and all, but an insane 45% of taxes imposed on any gains you made on your investment is an outright stealing in a way and would definitely force some people out of the country.

[ladydark]

That would really be a great relief for crypto users in France.Earlier tax of 45 percent means that almost crypto users had been paying almost half of their earnings.