French Authorities Reduces Crypto Tax from 45% to 19%
The French Council of State has changed the capital gains tax on Cryptocurrency sales. It has been reduced from 45% to 19%.
According to Le Monde, citizens had appealed to the body to reduce the taxes. It had been enforced through regulations as per July 2014.
France had always been a progressive proponent of Cryptocurrencies, seeking to provide a balanced regulatory structure for Cryptocurrencies. France had appointed a task force to examine Cryptocurrency regulations and had enforced a ban on Cryptocurrency trade and investment till the new regulations were in place.
Also in March, financial authorities were also looking to spearhead the regulations of Initial Coin Offerings (ICO) in France for the purpose of legitimate and sustainable development around this space.
The reason for the 45% tax on Cryptocurrency sales was that in July 2014, the profits from Cryptocurrencies were classified as either industrial/commercial profits or non-commercial profits. As a result, this had come in the highest tax profit of 45%.
It has now been classified as “movable property” for which cryptocurrency gains are now taxed in the lowest tax bracket of 19%.
The exceptions to the new regulations will be cryptocurrency mining which will retain the same tax bracket of 45% (non-commercial profits).
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