France has cut the rate of cryptocurrency income tax on capital gains, has encouraged citizens to invest, and has even made some profits on the market. With this move of France, the tax rate on the cryptocurrency has been reduced by half.
Reducing the tax rate in the cryptocurrency came at a good time for investors
In France, the Council of State ruled that the tax rate on cryptographic currencies should be reduced from 45% to 19%. When the generalized social contribution (GSC) is added to most incomes, the tax rate will rise, but still fall well below the 40% threshold. This decision came at a good time for crypto-currency investors. Bitcoin trade, with 10 crypto coins traded in the green field today, went above $ 9,000.
The tax rate on the cryptocurrency
The Council of State, the highest administrative court in France, stated that crypto-currencygains were considered “movable property”, such as precious metals, and therefore subject to a lower tax rate than previously granted. In addition, the tax rate will be lowered by changing the rules in force since 2014.
Commercial activities such as mining will again be subject to a 45% tax rate
In the local French report, it was stated before the decision that the cryptographic currencygains are industrial or non-commercial profits. Under this classification system, the capital gains tax for cryptographic currencies was 45% for residents with the highest tax allowance. At the same time, commercial activities such as mining for the cryptocurrency will be subject to a 45% tax rate. The low rate is specially designed for investment returns.
With new classification as movable commodities, crypto-currency profits are more similar to movable assets such as vehicles, planes, and intellectual property, precious metals. This category reveals a 19% tax rate, which is more attractive for crypto money transfers.
French authorities look at cryptocurrencies positively
French Finance Minister Bruno Le Maire was one of the officials who wanted crypto money to be on the agenda at the G20 meeting earlier this year. Le Maire, Bitcoin and other cryptocurrencies positively a person. Bruno Le Maire is now working on France becoming a friendly country for Blockchain ventures.
Earlier, a French president Emmanuel Macron, who poses with a crypto money hardware wallet, also seems to be looking at the cryptocurrency hot. In the past year, France has turned green on the bank to support unsold securities trading using Blockchain technology.