France Announced That Reducing the Cryptocurrency Income Tax Rate Market Reads as a Signal to Relax
The French government announced a tax reform plan on the 26th that plans to reduce the income tax rate generated by cryptocurrency transactions and reduce the highest level from 45% to 19%.
The tax reform announced by the French Parliament may be only the beginning of a long road, but it will bring benefits to cryptocurrency investors.
As France has changed the classification of Bitcoin and its like, it is currently in the category of “removable property”, which means that the tax rate of its capital gains is 19%, so the simulation effect of tax cuts has already emerged. Prior to this, cryptocurrency gains were considered “industrial and commercial profits” and only a small part of the transactions were considered “non-commercial profits.”
After the news broke, Bitcoin traded on Friday at a price close to the $9500 mark, as cryptocurrency investors are optimistic that regulation may become less stringent.
Earlier in January, French Finance Minister Bruno Le Maire spoke on the cryptocurrency, noting that Germany and France will jointly promote global supervision during the G20 summit in Argentina.
At the time, Lemel told reporters that the authorities “will conduct a joint analysis with Germany on the risks associated with Bitcoin, propose regulatory proposals, and submit these proposals as joint proposals to the G20 summit to be held in Argentina in March.”
Author: Marko Vidrih