In early November, the national parliament of France received proposed changes to a finance bill that was meant to lower the tax charged on crypto gains.
However,the proposed changes have been rejected leaving the cryptocurrency traders in France with a tax on their gains of approximately 36.2 percent. If the amendments were to be adopted, the tax on crypto gains would have been reduced by around six percent.
The proposed changes sought to have crypto gains taxed under the same rules as securities. Additionally,changes on tax on crypto losses were also rejected. The changes also sought to lawfully allow a tax to be charged on crypto gains only after being withdrawn from a bank account instead of the current system where crypto gains are charged in regards to their value on crypto exchanges.
According to Reuters:
“Currently, bitcoin gains are taxed at a rate of 36.2 percent while other forms of capital gains on other non-real estate assets are taxed at a flat 30 percent. The finance commission adopted an amendment to the 2019 budget bill that would subject sales of crypto-assets like bitcoin to the 30 percent flat rate as well.”
The 36.2 percent tax on crypto gains comprises of a 17.2 percent social contributions and 19 percent income tax.
2018 has seen France get involved in the crypto and blockchain spaces with the country’s lawmakers constantly finding ways to formulate new laws that will guide the country in the crypto space.
For example, Emmanuel Macron, the country’s president, has in the past expressed his optimism in driving France towards becoming a ‘startup nation.’ Bruno le Maire, the Minister of Economy and Finance, said that the country would allow initial coin offerings under a legal setting.
Do you think a 36 percent tax on crypto gains is extreme considering the current crypto prices?
Let us know your thoughts in the comments section below.