Once in France, there were in the last time many of the demands of taxpayers to reduce the tax rate for crypto-currencies, reacted to the French Council of state. Crypto-currencies are now classified as “movable property” and will be rewarded with a new tax rate””.
The French Supreme administrative court, the Conseil d’etat has changed the classification of the profits arising from the trade with crypto currencies. This resulted in a tax reduction of more than half for the trade with digital assets.
Since the year 2014 the crypto currency gains as industrial and commercial profits (BIC) have been classified, for the Trader with large volume, as well as non-commercial profits (NBC), which contribution was in addition to the normal social of a capital gains tax of 45 percent for high earners.
Due to massive pressure from the French taxpayers in the Public, the Council of state was now compelled to answer. This led to a judgment that the tax burden for the majority of investors are reduced tremendously.
The new classification of profits from crypto-currency sales, of course, there are again exceptions, to the category of “capital gains from movable property” leads to this tax relief. “Mobile property” means in France on tangible and intangible assets, including vehicles, jewelry and some other physical objects, as well as patents and copyrights.
The exceptions include the Mining of Bitcoin. In this case, the BIC and NBC classification is applied, which leads to a higher effective tax rate. If an investment is assigned to a commercial or professional activity and any private investment that also apply to the higher tax rates.
France was one of the first countries which called for a strict regulation for crypto-currencies in the international space. Brunoe Le Maire, French Minister of Finance, aims to take a leadership role in the crypto-currency sector and optimal conditions for companies from all over the world.
The easing of the tax rates is a first step that could attract more attention among investors on the international level.