The French Council of state, which advises the government on legal matters and acts as the Supreme court for administrative Affairs, announced that the profit from the sale of crypto-currencies should be treated as capital gains movable property.
According to local source, Le Monde, unprofessional cryptocurrency investors France «suffer inconvenience in anticipation of tax period.»
Previously, the income from the sale of cryptocurrencies in France were classified as «profit from commercial and industrial activities» and taxed under certain conditions to 45%, without taking into account social security contributions (CSG) at the rate of 17.2%. Now the taxation of cryptocurrency transactions will change dramatically, because in addition to CGS, traders will have to pay only 19% of income.
However, certain types of cryptocurrency transactions – for example, mining and profit from professional trading may be subject to taxation of commercial activities and continue to be taxed under the existing legislation.
The decision to amend was made after some local investors appealed to the Supreme governing body of the country about the strict tax regime associated with cryptocurrencies.