[2018-04-27] France Slashes Cryptocurrency Tax Rate from 45% to a Flat 19%

stomachgrowls

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Quote from: prehisto on April 28, 2018, 06:22:18 AM

Quote from: BitHodler on April 27, 2018, 02:17:19 PM

It's mind boggling that governments even dare to charge tax rates close the 50% mark over capital gains. Even 19% is still somewhat on the higher side, but compared to other European countries, it's around the lowest average.

I agree that 19% is very reasonable, i personally am not comfortable with anything that is over 20%. Since it feels just like theft and government in my mind does not deserve more than 20% of my earned money.

Also outrageous tax like 50% is encouraging tax avoiding practices.

50% would really be the reason why people would evade tax and they should really took into consideration that they are charging too much which people would see it is unjustifiable. Even in my county do charge up 12% tax but i do feel that the government do steal up something from me but well taxes are meant to be paid or an obligation but shouldnt really come to a point which isnt reasonable. Percentage will vary on each country which we would have different views towards this.

darkangel11

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Quote from: Lucius on April 28, 2018, 05:34:47 AM

I know that Belarus is declare 5 years of 0% tax on all business related to cryptocurrency,but did not know that Malta is have 0% tax.Regarding Germany tax is 0% if person sell BTC after 1 year or more after buying,but I think you will need to pay tax if you have sell more then 600 Euros in one year.

Yes' I know about that rule in Germany, but it doesn't really matter for most of us. If you bought your coins a year ago and have to choose whether to spend it in your country and pay 20-50% income tax (because usually it's more than 20% from decent amounts like 100k USD or more) or 0% in Germany, the choice is obvious.
As for Malta, they have some great business friendly tax rules. For instance income earned abroad is not taxed. This means that if you have a house somewhere else, move to Malta, pay taxes there, and keep renting the house in the meantime, that income will not be taxed.

prehisto

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Quote from: BitHodler on April 27, 2018, 02:17:19 PM

It's mind boggling that governments even dare to charge tax rates close the 50% mark over capital gains. Even 19% is still somewhat on the higher side, but compared to other European countries, it's around the lowest average.

I agree that 19% is very reasonable, i personally am not comfortable with anything that is over 20%. Since it feels just like theft and government in my mind does not deserve more than 20% of my earned money.

Also outrageous tax like 50% is encouraging tax avoiding practices.

Lucius

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I must admit that this kind of French move was a little surprised for me,from 45% to 19% certainly is not a small difference when it comes to paying taxes.They probably estimated that it is better to make this move and collect more tax,then encourage people to not pay tax-45% is too much(some will say that 55% is still good profit...).

Interesting fact is that France minister of finance Bruno Le Maire is supporter of cryptocurreny,and it seems that France president Emmanuel Macron shares his opinion.I do not know how much France government is profit from Ledger,but it seems that this company has very good profits and even Macron show support for them.

Quote from: darkangel11 on April 27, 2018, 02:59:30 PM

Quote from: BitHodler on April 27, 2018, 02:17:19 PM

It's mind boggling that governments even dare to charge tax rates close the 50% mark over capital gains. Even 19% is still somewhat on the higher side, but compared to other European countries, it's around the lowest average.

The lowest average is 0% like in Germany, Malta, or Belarus, if we're talking about European countries. As for the 50% it's communism at its finest. It's not enough that a percentage based income tax makes people who are earning more give more to the government. There are additional tax brackets for the wealthier, to even further increase the amount. That's why Gerard Depardieu escaped from France to Russia, which is apparently less communist than France Cheesy

I always wonder why people aren't leaving the countries where they are being robbed of half or more of their income.

I know that Belarus is declare 5 years of 0% tax on all business related to cryptocurrency,but did not know that Malta is have 0% tax.Regarding Germany tax is 0% if person sell BTC after 1 year or more after buying,but I think you will need to pay tax if you have sell more then 600 Euros in one year.

btcton

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Quote from: aso118 on April 27, 2018, 04:04:20 PM

Quote from: btcton on April 27, 2018, 03:38:36 PM

This is an example to follow for other countries. I am not an accountant or a tax specialist, but I believe that Bitcoin should be taxed as any other asset everywhere. The main problem, in my opinion, comes when the laws regarding Bitcoin or cryptocurrency taxation are unclear. It makes the most sense right now that it be taxed as an assets or capital gain.

Assets are not usually taxed. Capital gains are. You do not have to pay any taxes if you just hold bitcoins, although some jurisdictions have imposed taxes on your wealth.
The capital gains tax rate on cryptocurrencies does seem to be excessive. Capital gains are created by investing your (taxed) income, so there is a logic to having the capital gains rate lower than the normal income tax rate.

Right, that's what I believe should be done, but unfortunately it's not the case everywhere. I completely agree with capital gains being taxed lower as well, and with pretty much all you are saying. Property tax, however, does apply in some countries and I believe this is also what you are referring to when you say that some jurisdictions have imposed taxes on wealth itself, which in my opinion does not make any sense. I do not think cryptocurrencies have excessive rates everywhere, and I am not sure of the specifics of it inside the U.S. either as I usually just keep my bitcoins as such.

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Quote from: btcton on April 27, 2018, 03:38:36 PM

This is an example to follow for other countries. I am not an accountant or a tax specialist, but I believe that Bitcoin should be taxed as any other asset everywhere. The main problem, in my opinion, comes when the laws regarding Bitcoin or cryptocurrency taxation are unclear. It makes the most sense right now that it be taxed as an assets or capital gain.

Assets are not usually taxed. Capital gains are. You do not have to pay any taxes if you just hold bitcoins, although some jurisdictions have imposed taxes on your wealth.
The capital gains tax rate on cryptocurrencies does seem to be excessive. Capital gains are created by investing your (taxed) income, so there is a logic to having the capital gains rate lower than the normal income tax rate.

btcton

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This is an example to follow for other countries. I am not an accountant or a tax specialist, but I believe that Bitcoin should be taxed as any other asset everywhere. The main problem, in my opinion, comes when the laws regarding Bitcoin or cryptocurrency taxation are unclear. It makes the most sense right now that it be taxed as an asset or capital gain. There also exists the taxation format in which it is taxed with an equivalent to sales tax, which results in double taxation: once when the Bitcoin is bought and once more when it is sold. Technically that would not apply when you don't actually sell the Bitcoin, but even then, when you buy something using cryptocurrency, you would be paying sales tax again on that item, so it would be no different than trading with property, which is the bad thing about considering it such.

darkangel11

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Quote from: BitHodler on April 27, 2018, 02:17:19 PM

It's mind boggling that governments even dare to charge tax rates close the 50% mark over capital gains. Even 19% is still somewhat on the higher side, but compared to other European countries, it's around the lowest average.

The lowest average is 0% like in Germany, Malta, or Belarus, if we're talking about European countries. As for the 50% it's communism at its finest. It's not enough that a percentage based income tax makes people who are earning more give more to the government. There are additional tax brackets for the wealthier, to even further increase the amount. That's why Gerard Depardieu escaped from France to Russia, which is apparently less communist than France Cheesy

I always wonder why people aren't leaving the countries where they are being robbed of half or more of their income.

BitHodler

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It's mind boggling that governments even dare to charge tax rates close the 50% mark over capital gains. Even 19% is still somewhat on the higher side, but compared to other European countries, it's around the lowest average.

Japan on the other hand, a country that has rightfully been praised for its developments in crypto terms, charges 55% tax over the highest gains, which is insane. Profit is profit of course, but this feels like theft.

I am all fine with paying tax (and I actually do so) as long as it is close to the 20% mark, which doesn't really encourage anyone to avoid paying due taxes. Rates close to 50% however do stimulate tax evasion.

Article points out that miners making profits don't enjoy the benefits of this recent tax deduction, but there is nothing being mentioned what they consider a miner to be, aside from the obvious.

Is someone owning cloud mining contracts or shares a miner too in France, or are they holders of securities. Roll Eyes

tyz

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France Slashes Cryptocurrency Tax Rate from 45% to a Flat 19%

The French Council of State has decided to change the classification of cryptocurrency capital gains, thereby lowering the tax rate from as high as 45% to a flat rate of 19%, a French online publication revealed. With the added generalized social contribution (GSC) for most incomes, the tax rate would rise but still falls well below the 40% threshold.

https://www.ccn.com/frances-cryptocurrency-tax-more-than-halved-to-19/

Topic: [2018-04-27] France Slashes Cryptocurrency Tax Rate from 45% to a Flat 19% (Read 181 times)