National Assembly of France rejected several proposals for amending their tax laws to accommodate those who use and trade in cryptocurrency.
Some of the rejected recommendations include reducing tax liability for crypto investors – like exempting taxes on capital gains. One of the vetoed suggestions is regarding the surge in yearly tax exemption from the existing 305 Euro to either 3000 or 5000 Euro.
According to the National Assembly, “305 euros is already quite favourable as they are comparable to how the tax securities, and increasing to 5000 or 3000 seems particularly excessive.”
Another suggestion that got scrapped was the one imposing same taxation rules for capital gains under securities on cryptocurrency trading.
Likewise, the amendment to differentiate between y-to-day crypto-related activities and irregular activities ones that can lead to far more satisfactory taxation for crypto users was shown the door. So was a suggestion to write off crypto taxes when faced with capital losses.
As per article 16A of the tax law, the crypto tax is imposed based on their conversion values currently. The proposed change was to levy a tax on gains when the investor sells, withdraws or redeems their investments and they get credited to his/her bank account, which was rejected.
While most of the recommended changes have been denied, the proposed 30% standard tax for cryptocurrency transactions was not visited at all at the meet. The National Assembly officials too agreed that it would be a good move as “a flat tax rate is positively welcomed for its simplicity and legal certainty.”