Cryptocurrency In France Considered ‘Movable Property,’ Traders Get Tax Break

- Advertisement -

After challenges by French taxpayers, the French Council of State ruled that cryptocurrencies are “moveable property,” and reduced the applicable tax rate from 45 percent to 19 percent.

The supreme French administrative court, the Council of State (or Conseil d’État), has altered the classification of cryptocurrency capital gains, resulting in a tax rate reduction of more than half for trading the digital assets.

From 2014 until today, cryptocurrency gains have been classed as industrial and commercial profits (French abbreviation BIC) or as non-commercial profits (NBC), resulting in a capital gains tax of 45 percent for high earners in addition to the generalized social contribution (CSG) of 17.2 percent. 

A number of French taxpayers challenged the classification by the Council of State and won, resulting in a verdict that significantly reduces tax burdens for most French investors.

The Council of State ruled that cryptocurrency sales are “in principle of the category of capital gains of movable property,” with some exceptions. “Moveable property” in France refers to tangible and intangible assets, including vehicles and jewelery, but also to less physical items, like patents and copyrights.

Cryptocurrency Mining Will Be an Exception To the Rule

In the official communication from the Council of State, it is emphasized that “certain circumstances specific to the transaction may imply that they fall under provisions relating to other categories of income.” (E.g., bitcoin gained by mining will still fall under the existing BIC or NBC classifications.)

- Advertisement -

If an investment forms part of a commercial or professional activity, rather than a private investment, it will also fall under BIC classification and retain the original higher rate.

In the US, cryptocurrencies are classed as property or capital assets, such as stocks, bonds, real estate, or gold. Short-term capital gains are taxed at the normal income tax rate in the US, with long-term gains taxed at a reduced rate ranging from 15 percent to 23.9 percent. High earners in the US are subject to income tax rates of between 32 and 37 percent.

France is generally supportive of cryptocurrencies, and called for them to be on the agenda at the most recent G20 meeting. French Finance Minister Bruno Le Maire hopes the country will take the lead in regulation and become a “hotbed” for blockchain innovation.

- Advertisement -

For French cryptocurrency investors and blockchain proponents, this positive news may encourage activity within the sector.

Melanie Kramer is a freelance FinTech, blockchain, and cryptocurrency writer based between France and Canada. Melanie has studied, and retains an avid interest in, global politics, business, and economics.

Like what you read? Follow us on X @Bitnewsbot to receive the latest France, capital gains tax or other Ethereum world news.



Previous Articles:

- Advertisement -

Latest

Crypto’s “Inverse Cramer”: Trader Gains Millions Opposing James Wynn

A trader known as James Wynn became notable for a $1 billion Bitcoin short position on the Hyperliquid platform.Other crypto traders have started to...

Bitcoin Drops 10% From Highs Amid Quantum Computing Warnings

Bitcoin dropped nearly 10% from its record high, falling close to $103,000 after reaching $112,000 last week. BlackRock warned that advances in quantum computing could...

Czech Justice Minister Resigns Over $45M Bitcoin Donation Scandal

Czech Justice Minister Pavel Blazek resigned after controversy over accepting and selling Bitcoin from a convicted criminal.The Justice Ministry auctioned nearly 500 Bitcoin, raising...

Uniswap (UNI) Rebounds Above $6 After Brief Uptrend Breakdown

Uniswap's UNI token dropped below its key uptrend line following a failed hold above the $6.00 support level.High trading volumes accompanied the decline, including...

Michael Saylor Invites Joe Rogan to Discuss Bitcoin on Podcast

Michael Saylor has shown interest in discussing Bitcoin on The Joe Rogan Experience podcast.The idea has generated excitement in the Bitcoin community, with some...

Must Read

Top 10 Best Crypto Faucets To Earn Free Crypto

Are you looking to earn free cryptocurrency? Look no further! In this article, we will introduce you to the top 10 best crypto faucets...