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Bitcoin: French government lowers taxes

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France is undoubtedly one of the leading countries in Europe when it comes to cryptocurrencies. This concerns the acceptance, integration and legalization of the cryptocurrencies. This is possible thanks to the business-friendly attitude of the government under President Emmanuel Macron.

The positive attitude of the French government is reflected, for example, in the lower capital gains tax on cryptographic gains. These regulations are to be adapted and come into force at the beginning of next year. France plans to change the law to include a lower tax rate.

Reuters reported that the Finance Committee of the National Assembly of the Parliament in Paris has approved an amendment to the forthcoming budget law. This will reduce the capital gains tax on cryptocurrency sales from 36.2 percent to 30 percent. The same percentage applies to many other capital gains in France.

However, it should be remembered that the French Parliament is organized in a bicameral system. The second chamber, the senate, has to agree with the amendment. MEPs will discuss this in the coming days before a vote is taken. If the bill is generally adopted, the new tax rate will apply from 1 January 2019.

This amendment is the latest in a series of legislative initiatives by the Emmanuel Macrons Government. France wants to create a legal framework for Blockchain start-up companies.

The tax situation in Germany

Germany is less progressive than France in terms of cryptocurrencies. Even legally, the country lags behind. This is expressed, for example, in the fact that gains from speculation with cryptocurrencies do not constitute capital gains in the sense of tax law. This is because cryptocurrencies are not legal tender in Germany.

According to a ruling of the European Court of Justice, the profits earned are not subject to VAT, but are subject to income tax.

However, the usual one-year holding period after which the profits are tax-free. If you leave your cryptocurrencies for a year in the portfolio and then sell them, you do not have to pay tax on any profits. The amount of profits made is not significant.

However, determining income, setting it up and offsetting losses is likely to be a problem for many investors. Since most platforms do not provide preprocessed data, active investors may need to handle large amounts of data manually.

Also, it remains unclear which tax approach to cryptocurrency should apply. Is “FIFO” (“first in first out”) or “LIFO” (“last in first out”) used? So far, it seems that taxpayers can choose a method, but they have to keep it.

Since these rules are always in flux and can differ between tax offices, it is always recommended to consult a specialized tax advisor.

Sources: Reuters, Medium, Finanzen.net, Pixabay

Author: Peter Joost – Source Post: https://www.kryptovergleich.org/bitcoin-franzoesische-regierung-senkt-die-steuern/

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