Earlier this year, many taxpayers in France were concerned about the 45% tax on every transaction in cryptocurrencies. Gain from the continuous and usual sale of cryptocurrency is commercial profit, and if the gain is from occasional sale then its non-commercial profit. And tax rates for commercial & non-commercial profit will be different that can go as high as 45%.
Some legislative steps taken by Council of the state
- Council of the state has decided to regulate the profit from the sale of cryptocurrencies as the profit made of “movable property” and will be taxed at a flat rate of 19%.
- If the capital gains have resulted from activities other than cryptocurrency-related sales but “bitcoin mining”, for example, if they would fall under the category of commercial profits irrespective of whether or not the activity was occasional. Hence, these profits will be taxed at the higher rate of 45%.
These steps taken by the council of state could fulfill a legitimate business need as government officials are calling for a higher emphasis on the crypto exchanges.