French lawmakers are restoring taxes imposed on holders of Bitcoin and other cryptocurrencies.
According to a Reuters report, the French finance commission has made plans yesterday regarding the capital gains tax, which is also applied to cryptocurrencies, along with other capital gains taxes.
Any income from owning cryptocurrencies is currently taxed at 36.2%. Other non-immovable assets are taxed at 30%. The change will likely reduce the capital gains tax on cryptocurrencies to 30% as a flat rate.. For this to happen, the budget report needs to be approved in its last update.. According to Cointelegraph, if the report is approved, it will go into effect on January 1 next year.
Previous reports in April this year suggested that French legislators reduce the capital gains tax on Bitcoin from 45% to almost 19%.
Currently, if they send cryptocurrency for business or so, the amount the capital owner will pay depends on his income.. However, if this amendment is approved, the fixed rate of capital gain tax will be 30%.. Good for some, but not for all.
French politicians have been very active in regulation and compliance in the crypto community. In September this year, despite calls for a united Europe approach, French legislators put themselves in a situation where they protect internet user citizens from fraudulent ICOs.
What is a capital gains tax?
To be subject to capital gains tax, you must earn from your capital. Let’s say you have 1 Bitcoin, it is $6500 right now, if this digital asset becomes $7000 in the future and you make $500 profit by selling it, you will have a capital gain of $500.
Then capital gain tax. it is very easy. You pay some of that profit you make to the government as tax.. If the change in France is approved, cryptocurrency traders will pay 30% tax on every capital gain they make, down 6.2%.
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