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France has reduced by more than half its tax rate on cryptocurrency revenues, encouraging citizens to invest and even to take profits. the market.
The French State Council decided to change the classification of capital gains from crypto-currencies, thus lowering the tax rate by 45% to a flat rate of 19%, revealed a French online publication. With the generalized social contribution (GSC) added for most incomes, the tax rate would increase but remain well below the 40% threshold.
The revision could not come at a better time for cryptocurrency investors, with bitcoin trading comfortably above $ 9,000 and the other 10 coins also in the green today.
The highest court of administration of France, the State Council, has determined that the benefits of crypto are considered as "movable property". tax rate that had previously been imposed, rewriting the rules that had been in place since 2014.
Before the decision, cryptocurrency gains were identified as industrial and commercial profits or non-commercial profits, explains the local French report. According to this classification system, the capital gains tax for cryptocurrency was 45% at the higher end for residents of the highest tax bracket.
With the new classification of "moveable property", cryptocurrency profits are more closely related to goods that may be transported, such as vehicles, aircraft and precious metals, as well as property intellectual. This category combines a more attractive uniform tax rate of 19% for the transfer of cryptocurrencies.
Before packing and heading to France, there are some exceptions to the new rule. For example, the profits generated by the bitcoin extraction process remain subject to the original tax rate. The lower rate is specifically designed for investment gains.
France's finance minister, Bruno Le Maire, was one of the officials to demand that cryptocurrencies be on the agenda of the G20 meeting that is being held earlier this year. The Mayor has gradually accepted bitcoin and other digital currencies in light of the country's leading position in financial technology more broadly.
He wants France to take the lead in regulation in what he recently called "cryptocurrency revolution" and that the country is a home for blockchain innovation, including ICO licensed and unlicensed.
As NCC reported earlier, French President Emmanuel Macron seems to have adopted bitcoin, as evidenced by a photo of him holding a bitcoin hardware portfolio.
Last year, France gave the green light to banks to support the trading of unlisted securities using blockchain technology.
Image from Shutterstock to photo
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