France Lowers Investment Gains Tax On Cryptocurrency To 19 Percentbr>
Trying to incentivize investments in cryptocurrency, France has slashed its cryptocurrency income tax rate on capital gains from 45 percent to a flat 19 percent. The French Council of State has changed the classification of cryptocurrency capital gains to achieve the new rates.
France’s Council of State was a key to the cuts. It said that cryptocurrency profits are considered “moveable property,” which means they are subject to a lower tax rate. Prior to the ruling, cryptocurrency gains were identified as either industrial and commercial profits or non-commercial profits. That means those in the highest tax bracket were subject to a capital gains tax of as much as 45 percent,
There are execeptions. Profits in bitcoin mining are still subject to the former tax rate. The new program is strictly for investment gains.