As crypto craze continues, governments have started thinking about the introduction of appropriate tax regimes covering cryptocurrencies.
Tax on profits from sales of cryptocurrencies could reach up to 62% until now. The French government did not remain indifferent to public complaints and reconsidered the tax regime for cryptos.
The Council of State, a body of the French national government that acts both as a legal adviser of the executive branch and the Supreme Court for administrative justice, revised its taxation decree adopted in 2014. The document said that those tax payers selling cryptocurrencies could be charged a tax of up to 62%.
From now on, if crypto activity is undertaken on the occasional basis and if the coins have not been obtained through mining, the tax totals 19%. This number does not take into account the general social contribution (CSG) and other taxes. Gains from selling cryptocurrencies will be taxable in the same manner as capital gains on movable goods.
Also, according to the new regulations, the re-selling of crypto will be completely exempt from tax if the volume of crypto is less than 5,000 euros.
Meanwhile, mining is a particular case. “Gains from selling Bitcoin are subject to be placed in the non-commercial gains category on the basis of Article 92 of the general tax code to the extent they do not constitute a capital gain from an investment operation, but are part of the participation of a tax payer in the creation or functioning of this virtual payment unit system,” says the official communique of the Council of State.