French Parliament Rejects Proposal To Make Crypto Taxes Favourable To Traders

Wilfred Michael 

Wilfred Michael

Reporter

20 December 2018,
08:45

Any hopes of a subsidized crypto tax fillings for French crypto traders and investors suffered a blow on Tuesday after the country's parliament rejected proposals in that regard.

French Monthly Magazine, Capital, reported that the lower house of the French parliament refused to approve four changes around crypto taxation laws that were proposed for the country’s 2019 finance bill.

The first proposal, according to Bitcoin.fr was to create a difference between daily crypto traders and occasional investors. Such a distinction was supposed to set the stage for a more relaxed tax system for those who use cryptocurrencies once in a while.

The second rejected proposal was to increase the value of taxable crypto transactions from €305 ($350) to €3,000 ($3,430), or even €5,000 ($5,714).

The third proposal which was denied requested that the securities taxation guidelines for capital gains should be used by the parliament when rolling out crypto taxations.

The fourth and final proposal was the reduction of the crypto income tax rate from the government approved 36.2% to 30%.

The rejection of the relaxed crypto tax proposals did not go down well with the French crypto industry. Alexandre Stachtchenko, president of La Chaintech blockchain association, told Capital in an interview that the four “critical” amendments would have brought regulatory certainty to crypto taxpayers.

He argued that the proposals have no reason not to be approved since some of them were already applied to stock market transactions in the State.. With the denial, Stachtchenko expects crypto traders to resort to not declaring their crypto earnings.

He explained that paying the taxes under the existing laws will be as if the government is telling traders,

"Take all the risks, we will not support you, and the money you will earn to take risks will go into the coffers of the state."

The issue of collecting crypto taxes have similarly garnered momentum in Japan with the National Tax Agency (NTA) proposing to make some changes that will reduce the rate of crypto tax evasion in the country.