After crypto investors in France went to the Supreme Court to challenge the heavy tax levied on profits from cryptocurrency trading, the tax on crypto profits has finally been reviewed from 45% to 19%. But for this to happen, cryptocurrencies have been put in a different category called ‘movable property’
The change was made by the French council of state with the news first reported by Le Monde. Before cryptocurrency gains were labeled movable property, they were categorized as ‘industrial and commercial profits’.
Although the 19% will be a flat rate, profits from cryptocurrency mining will not be treated as ‘movable property’ and will have to incur the high tax rate because they are still labeled as industrial and commercial profits.
The harsh cryptocurrency tax rules took effect back in mid-2014. At the beginning of this year, Bruno Le Maire, France’s economy minister, put together a task force that would scrutinize cryptocurrency regulations in the country. The current review on the tax levied on crypto profits seem to be the concerted efforts between the task force and other concerned parties.
In March this year, the financial watchdog in France was reportedly looking into developing regulations that would see Initial Coin Offerings issued in the country and recognized by the French government as legal ways to raise funds.
“Our goal is to provide legal certainty for those who seek it, without hindering those who want to follow their own path. We have a rather liberal approach. We work for a flexible, non-dissuasive framework. At the same time, we are not naive either, we know that these products can be risky” noted the finance ministry as reported by Les Echos.
With the regulations being crafted which, by the look of things, will favor the crypto investors in France plus the tax on crypto profits reviewed downwards, the retail crypto investors in France will surely enjoy the fruits of their labor.
Is 19 percent fair enough or should the tax on crypto profits be scaled down further?
Let us know your thoughts in the comments section below.