Reports have arrived that the French Council of State has announced that profits due to the sale of cryptocurrencies will be considered as capital gains of ‘movable property’. This means that the tax rate that is levied on cryptocurrencies will come down considerably. The Council is the body that advises the government on legal matters and also acts as the supreme court for administrative issues.
Presently, gains from the sale of cryptocurrencies are treated as industrial and commercial profits. Non-commercial profits are those which are accrued from occasional transactions.
This meant that people had to pay taxes as high as 45% on crypto gains. Additionally, they had to cough up the country’s generalized social contribution (CSG) of 17.2%.
What will happen now?
However, now cryptocurrencies are classified as movable property, and it attracts a flat CGT liability of 19 % and CSG.
The local publication, Le Monde, reports that the Council of State has said that certain types of transaction may “fall under provisions relating to other categories of income.” It also revealed that proceeds from cryptocurrency mining as well as other cryptocurrency activities would be taxed under the BIC rate.
This move has been initiated by the Council after several crypto enthusiasts complained to the supreme court about the steep taxes that were imposed.