As reported by the newspaper Le Monde, on Thursday, the Council of State of France announced that the profit from the sale of cryptocurrencies will be treated as capital gain chattels. This decision should significantly reduce the tax rate.
Currently, the profits from cryptocurrency trading is usually considered “industrial and commercial profits” (BIC), while profits from irregular transactions regarded as “non-commercial profit”.
This means that for taxpayers in a high tax bracket the tax captopril can reach 45 percent, which has added to the General social contribution (CSG) at the rate of 17.2%.
In the classification of scriptaction as movable property ( ie assets, which in contrast to buildings is not fixed in one place), investors in digital currencies will have to pay tax on realized capital gains (CGT) at the rate of 19% (plus CSG).
The newspaper Le Monde adds that at the request of the State Council, certain types of transactions may “be subject to the provisions relating to other categories of income,” and that the profits from mining cryptocurrency, and commercial activities related to blockchain technology will still be taxed at a rate of BIC.
According to the report, this step was taken after several investors appealed to the Supreme court at the harsh tax regime.