France Sets Bitcoin Taxes Straight
The French National Assembly has announced new rules for cryptocurrency gain taxation. From now on, the tax rate will stand at a flat rate of 30%. Before, the rates varied, depending on numerous unclear factors and oscillated around 36%.
France has been paying attention to the quickly developing cryptocurrency trend for a while now. Some possible changes in the French law was already declared in January 2018. Now, it’s finally the time to implement them. The French National Assembly has announced a new amendment to the cryptocurrency tax rate, The Reuters reported on November 7th.
Why was it so important?
Before, the rules for cryptocurrency traders weren’t very clear. Crypto holdings up to €5000 were completely free from any taxation. But after reaching that limit, complications were numerous. The tax rate was very variable and there was no stable number set. A different rate applied to different parties – it was regulated on the basis of some vague factors that not every cryptocurrency holder understood. Generally, the rate oscillated around 36%.
Now, everything has changed. Starting from January 1st, 2019, the rules of cryptocurrency taxation in France will finally be crystal clear. Bitcoin will apply under the France’s existing PFU (Prélèvement Forfaitaire Unique) fiscal law. These rules determine a simplified form of taxation with a flat rate of 30%. It means that from now on all the gains from Bitcoin or any other cryptocurrency trading will be taxed at a stable 30% rate.
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