Bitcoins: Towards A Much More Favourable Taxation

Bitcoin

Should we expect a jump in the course of bitcoin and others? Virtual currencies will indeed benefit in France from a much more favourable taxation for the holders. Indeed, the Council of State has just cancelled the tax instruction dedicated to virtual currencies dating from 2014 following an appeal filed by a law firm representing virtual currency holders.

As a result, capital gains will no longer be subject to the regime of non-commercial profits (BNC) or the Industrial and Commercial Profits (BIC) but to that of movable property, and will therefore be less taxed. If it is an occasional activity.

Bitcoins: Towards A Much More Favorable Taxation
Bitcoins: Towards A Much More Favourable Taxation

The Council of State has ruled that “bitcoin units are intangible assets and that the profits from their sale are, in principle, part of the capital gains tax regime”.

In concrete terms, the maximum tax rate for these cryptocurrencies will be increased from 45% to 19%, to which will be added social security contributions, 15.5% for income earned in 2017 and 17.2% for those generated in 2018.

Another advantage, the regime of movable property provides a total exemption of tax if the resale value (and not the capital gain) does not exceed 5.000 euros. Finally, the framework is easier to understand and use than the NBC system. But in case of “usual” activity around cryptocurrencies, the regime that will apply will be that of Industrial and Commercial Profit (BIC).

Ruth Karpenter

Ruth is the senior contributor to Weird News Ledger, and can’t really think of a better job than one that lets her read and write interesting stories on everything from aliens and asteroids to Bigfoot and the Loch Ness Monster. Ruth previously worked in magazines at Transcontinental Media and headed up the lifestyle department at Sun Media. Her Twitter bio describes her as a “reader, writer, eater,, fancy geek, summer cyclist,” which pretty much sums up how she spends her time outside of work.

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