France Reduces Cryptocurrency Tax
French lawmakers have adopted an amendment to the budget bill 2019, which will reduce the capital gain tax from 36.2% to 30%.
The financial commission of the lower house of the French National Assembly has adopted an amendment, which must now be approved as a part of the final version of the budget bill. If approved, the new amendment will enter into force in January.
The tax on profits from the sale of cryptocurrencies in the third largest economy in Europe reached 45%. In April, the state council decided that income from the sale of digital assets should be treated as capital gains on movable property, which meant a significant reduction in the tax rate. The exceptions were mining income, which is taxed as uncommercial profit, and income derived from professional activities, taxable as industrial and commercial profit.
Under President Emmanuel Macron, France intends to become a “haven for business”, including a cryptocurrency one. As a part of the PACTE, legal guidelines have been developed to raise funds through token sales.
In September, the French Parliament passed a law establishing guidelines for initial coin offering (ICO). Announcing the new legislation, the Minister of Finance Bruno Le Maire said that the legislative framework allows the French financial regulator to approve and issue permits to companies planning an ICO in France, but only if these projects provide specific guarantees for investors.