The crypto space is getting more vibrant in France, as the nation has a somewhat friendly stance towards the blockchain-based digital currency ecosystem.
Crypto traders in the country sure have every reason to be happy and look forward to a profiting, and bright future for the crypto industry as recent reports states that the council of state has reduced the tax rate for cryptocurrency-related transactions.
Before now crypto taxpayers have had a rough time and massive tax demand from the government.
Proceeds from the sales of Cryptocurrency were seen as commercial and industrial profits in the case of usual and continuous activity and considered non-commercial earnings in the case of occasional activity.
Taxpayers were subjected to the agony of paying different figures as a tax without much thought, of which the tax rate could be as high as 45% sometimes as the case may be.
In the wake of this year, the Administrative court of France was approached by stakeholders in the French cryptosphere, on behalf of all crypto traders paying tax challenging the instituted regimen related to Bitcoin and other cryptocurrencies tax rate.
Fortunately, the heart cry of claimants was heard, and crypto investors in France can now breathe a sigh of relief as the Council of States reviewed the tax rates and adjusted it in their favour according to a report by Le Monde.
The new tax rate is now fixed at 19% which is considered very low compared to the previous tax charges.
The Council looked into ways that gains from Cryptocurrency are regulated and put these profits under the “moveable property” category.
Though this new tax rate is subject to reversal under particular cases according to the Council and this will not apply when activities other than crypto-related transactions take place.
Profits from cryptocurrency mining operations fall under the category of commercial and industrial gains, and this would attract the old form of tax to be meted out on the profits made.
Crypto Fever Slowly Spreading in France
There is hope for the expansion of Crypto space in France as the Governor of the Bank of France called for a higher highlight on crypto exchanges.
The head of AMF France’s stock market regulator (Authorite des Marches Financiers) in 2017 responded positively with enthusiasm towards the cryptocurrency industry saying that “this area has the ability to fulfill to a legit business need.”
It is expected that this new development on taxes will further boost the cryptocurrency industry in the nation.