The Counseil d’ Estat, on April 16, stated the crypto-generated profits should be considered as capital gains. That means that the new regime will tax cryptocurrency profits with a flat rate of 19%, significantly lower than the previous 45%. Nevertheless, the final rate will reach 34.5%, including other social taxes.
The way regulators all around the world are regulating cryptocurrencies and taxing gains differ, with the taxes paid over the profits in some countries to be extremely high like in the case of France. The tax rate could go up to 45%.
As France is one of the most influential countries in the European Union, this decision is extremely important, leaving a precedent in taxing Bitcoin and cryptocurrencies. Other counties are possible to follow the example of France to reduce the taxes applied to gains related to trading virtual currencies.
Mr. Burno Le Maire, the French Finance Minister, called for worldwide crypto regulations in the past, but he also expressed his support for the crypto-space.
Mr. Le Maire explained:
“These new financial technologies bring promises but, at the same time, they bring risks: terrorism financing, money laundering activities and speculation. That’s why we must define a framework in which these new technologies could develop in a safe way for countries and nations.”
Meanwhile, during the G-20 Financial summit that took place in Buenos Aires the last March, he stated that France is interested in becoming one of the major financial centers in the world to propose an ad hoc legislative framework for companies making Initial Coin Offerings.
France knows what is doing. That’s for sure. To remain competitive in the market, the authorities are very active. Also, Germany is taking further steps to attract crypto investments. In fact, the German Finance Minister elaborated those individuals who will use cryptocurrencies as a means of payment would not have to pay taxes on them.
Furthermore, in Germany, a new cryptocurrency exchange for wealthy investors has been opened; allowing individuals and enterprises invest safely in cryptocurrencies within a regulated exchange.
April 28, 2018 138 Views