French Government is Reducing the Tax Rate for Retail Crypto Traders
According to a report, amateur digital currency investors in France are presently hurt extremely when it comes to tax day. However, that is about to change.
As per a report, the French Council of State, the body that directs the government on legal matters, declared on Thursday that gains arising from digital currency sales should be recognized as capital gains of “movable property” a choice that will see the tax rate levied fall significantly.
Presently, profits from the sale of digital currency trading are usually considered “industrial and commercial profits” (BIC). Meanwhile, those with occasional transactions are treated as “non-commercial profits.”
According to a report, tax on cryptocurrency profits can be as high as 45 percent for higher-band taxpayers, and that’s also in addition to the country’s generalized social contribution (CSG) of 17.2%.
However, the Council of State said a particular type of transaction might “fall under provisions relating to other categories of income,” and that gains from digital currency mining as well as commercial activity relevant to the technology will still be taxed at the BIC rate.
As per the report, the move comes after numerous investors took a case to the supreme court over the harsh tax regime.