Category Archives: Conseil d’Etat

Auto Added by WPeMatico

French Crypto Taxes See Yet Another Drop Proposal

After stating in April 2018 that cryptocurrency taxes in France would be lowered, it appears that the government has settled on a figure.

Gains from the sale of cryptocurrencies were previously labeled as industrial and commercial profits under French tax law and therefore could have up to as much as 45% tax levied on them for larger users. With French social security contributions (CSG) currently standing at 17.2%, some wealthier crypto traders could have been paying a massive 62% in tax.

In April the Conseil-D’état, under new tax laws specifically aimed at Bitcoin had suggested setting the new crypto tax rate at 19%, which is the same rate applied to what the French call “movable property”, such as cars, jewelry, and patents. Bitcoin would fall into that same category.

However, the Finance Commission in France’s lower house of parliament revealed on Wednesday that its latest amendment to French taxation as it applies to cryptocurrency assets proposes a flat rate of 30%, equal to the current rate of French capital tax, from January of 2019.

The Bank of France proposed a ban earlier this year on investment companies to keep financial institutions from conducting business in the cryptocurrency market until the government could enact proper regulation. The Bank of France Governor Francois Villeroy de Galhau commented earlier this year that new laws were required to cover cryptocurrency exchanges, assuring investors who had previously been shocked when he commented:

“Bitcoin is in no way a currency or even a cryptocurrency. It is a speculative asset. Its value and extreme volatility have no economic basis, and they are nobody’s responsibility.”

The latest details coming from France’s lower house are sure to encourage investors, although original suggestions of a new rate of 19% proposed by the Conseil-D’état earlier in the year would have been far more warmly received by the industry.

The French aim is still geared towards establishing a more global regulatory network as digital currency is used globally, not simply in France. The country’s Finance Minister, Bruno Le Maire, has suggested that the G20 need to reach agreement on how Bitcoin could be regulated amongst the member countries.

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay

The post French Crypto Taxes See Yet Another Drop Proposal appeared first on BitcoinNews.com.

Russians Race to Pay Crypto Taxes Before Government Legislation

It has been reported that Russian taxpayers are now declaring their crypto earnings prior to Duma legislation being passed in the country.

Many European countries are currently tackling their tax laws in the light of the increasing popularity of cryptocurrencies and a rapid rise in digital currency adoption.

France is a case in point. French daily Le Monde noted earlier this year that the crypto tax rate would be lowered after citizens appealed to France’s highest regulatory body to change the regulations for crypto transactions that had been in place since July 2014. The Conseil d’Etat set the new crypto tax rate at 19%, dropping it from a huge 45%; reportedly the move was specifically aimed at Bitcoin.

Poland also changed its original position on cryptocurrencies in that country, as part of a thorough analysis of the crypto space, announcing that it would be temporarily suspending tax collection for digital currencies, in view of tax legislation not being in place. Again, as in France, public demand was a driver behind the government changing its tax policy.

In Russia, the tax situation is very much in limbo while the Duma comes to a decision as how to deal with cryptocurrency earnings. Results from this year’s tax campaign show that investors appear to have taken the matter into their own hands, prior to any government action, declaring their cryptocurrency in their April tax returns. Income tax in the country currently stands at only 13%.

The situation in light of the current status quo, without specific legislation, requires Russian citizens to adhere to current tax laws. The tax base for earnings in cryptocurrency payable in Russian currency, the ruble, is aimed primarily at an accrued profit; the excess amount of the total received from the sale of cryptocurrency over the buying price.

New laws will also come into effect next year which will address those engaged in crypto-related activities, including mining and trading, which also extends to both owners and clients of cryptocurrency platforms. These laws have been implemented due to a huge 12% of the population earning a living as their main source of income through cryptocurrency activities.

 

Follow BitcoinNews.com on Twitter at https://twitter.com/bitcoinnewscom

Telegram Alerts from BitcoinNews.com at https://t.me/bconews

The post Russians Race to Pay Crypto Taxes Before Government Legislation appeared first on BitcoinNews.com.