French Lawmakers Propose To Lower Taxes On Bitcoin Gains

News, Regulation | November 9, 2018 By:

Assemblée Nationale, France’s lower house of parliament, has backed plans to ease tax on bitcoin sales, in line with other capital gains taxes in the country.

The bill, proposed by the Finance Committee of the National Assembly, will reduce the tax rate for bitcoin sales from 36.2 percent to a flat 30 percent that other capital gains sales pay. The new tax rate would also apply to payments for acquisition of goods or services.

If approved in the final version of the budget bill by the broader parliament, the new rate will come into effect on January 1, 2019.

Before the the French government altered the tax rate for gains generated by cryptocurrencies in April of this year, bitcoin sales were labeled as industrial and commercial profits (BIC), and, in some cases, as non-commercial profits (BNC). These classifications have resulted in tax rates of up to 45% for the wealthiest taxpayers. The country also has an additional 17.2% generalized social contribution tax (CSG), bringing the real number to as much as 62.2%.