FRANCE’S Conseil d’Etat (Council of State) has reduced the tax on the sales of cryptocurrency to a flat rate of 19 percent.
This marks a rather large drop from the 45 percent where it previously stood. Cryptocurrency sales are now to be categorized under separate and non-commercial activity.
The Council of State said: “The sale of ‘bitcoins’ [fell under] the principle from the category of capital gains of movable property.”
The exceptions to the flat rate are earnings from crypto mining, which will be taxed as non-commercial profits, and income as a result of professional activity, which will be taxed as industrial and commercial profits.
Le Monde stated that the decision to change the tax on crypto came after citizens had appealed to France’s highest regulatory body to change the regulations on crypto transactions, these regulations had been in place since July 2014.
France has been revisiting their cryptocurrency regulation this past year. The economic minister of France had created a crypto task force which would delve deep and examine their currency regulation.
The French government also set out arrangements to a ban investment banks to trade in crypto until further regulation had been approved.
France’s financial market regulator was thought to be developing legislation that would help encourage the development of ICO’s.