France’s National Assembly has rejected a number of tax amendments aimed at lowering taxes for cryptocurrency traders and users. Among rejected amendments are those concerning capital gains and losses and crypto tax exemptions.
The French National Assembly rejected a number of tax amendments designed to benefit cryptocurrency traders and users on Monday, local media reported.
One of the rejected proposals concerns the increase in annual tax exemption from €305 ($347) to either €5,000 or €3,000. The National Assembly believes that “305 euros is already quite favorable,” stating that compared to how securities are taxed, “increasing to €5,000 or €3,000 seems particularly excessive.”
Another amendment that did not gain support was one to allow capital gains to be taxed on the same basis and under the same conditions as securities under the current system. Similarly, the amendment to distinguish between normal crypto-related activities and occasional ones that would result in more favorable taxation for cryptocurrency users was turned down, as was a proposal on crypto-related capital losses.
In addition, the amendment outlined in Article 16a to only tax gains on cryptocurrencies when they are sold and withdrawn to a bank account, instead of taxing them based on their values converted into fiat on crypto exchanges, was also denied.
30-Percent Flat Tax
While a number of amendments have been rejected, the proposed 30-percent flat tax for cryptocurrency transactions was not part of the proposals considered on Monday. It is, therefore, still part of Article 16 Bis. Currently, crypto assets are taxed at 36.2 percent, which is 19 percent income tax and 17.2 percent social contributions. It was mentioned at the National Assembly meeting that “a flat tax rate is positively welcomed for its simplicity and legal certainty.”
Reuters previously explained that “Currently bitcoin gains are taxed at a rate of 36.2 percent while other forms of capital gains on other non-real estate assets are taxed at a flat 30 percent.” The news outlet further noted that “The finance commission adopted an amendment to the 2019 budget bill that would subject sales of crypto-assets like bitcoin to the 30-percent flat rate as well,” as news.Bitcoin.com reported.
What do you think of France’s approach to crypto taxation? Let us know in the comments section below.
Images courtesy of Shutterstock.
Need to calculate your bitcoin holdings? Check our tools section.