Topic: The wave of cutting tax for Bitcoin & Cryptocurrency in Europe (Read 225 times)

This seems to be something really positive, in my opinion. I mean in most countries, bitcoin was already being taxed on any capital gains incurred through the trading of it, however there are still pretty unfavorable rates, and sometimes may also lead to double taxing of bitcoin both as a GST and CGT.

France seems to have done a pretty good job in addressing this, and also lowering the rates for CGT to attract more bitcoin investors and traders into its country.

It's a smart move from a long term perspective - you obviously would want to stay competitive as a nation with something as promising as crypto, in order to allow crypto-related businesses to thrive in your country.

Following France, Thailand’s Revenue Department has just announced that they will waive 7% VAT for investors. Although VAT for crypto investors will be waived next week, they will still pay 15% for capital gain tax which is earned through their cryptocurrencies transactions. However, I think that, the VAT waiving of Thailand Securities and Exchange Commission will have a number of important implications for future practice. This sudden action will not only lead the wave of cutting tax in South East Asia but other Asian countries also, especially Japan, Korea and China. And I also think that, this action will "force" many governments to adjust their opinions of cryptocurrency or at least, take it into their serious considerations. As an crypto investor, I highly appreciate this action of SEC and I won't be surprised if Thailand will be one of the most attractive countries in Asia region in attracting crypto investors.

I've never understood why a supposedly unified continent has such wildly divergent tax rates. They're all taking money out of each others' pockets or driving money into the arms of others.

And it's also interesting that the most legit crypto country, Japan, has the most crippling tax rates on it. I would've expected them to go easy to get things rolling.

The idea will always matter depending on how quality their system is to detect it. Taxing should not be done since its a decentralized platform but since many businessmen engage in it the government sees that they will benefit on it.

I mean if this is a trend that we'll be seeing all throughout Europe, I think we're going to be very competitive to existing and future crypto companies.
Especially compared to the US and some other countries that currently have a high tax-rate for cryptocurrency investors.

That said, I really do wonder if the US is going to keep up its current taxation of crypto earnings.

Such good development for Bitcoin and cryptocurrency and such good strategy for France and other European countries. Before, countries are not accepting Bitcoin openly. And then comes the time when Bitcoin was gradually allowed, albeit regulated in some. Now comes the time when countries are offering several incentives and breaks for cryptocurrency and Bitcoin-related businesses to enter their jurisdictions. More positive developments to come for sure.

Implying proper and moderate tax on the gains of crypto will not only open doors fpr governments to allow cryptocurrency usage but will also create a sensible and more aware environment within the users about the particular currency.

This way the government will also get a certain bemefit which initially would just slip away from it, and the citizens will have a kind of guarentee that the currency will not suddenly be banned in atleats their country any soon.

I can see the United Kingdom attempting to become a big part in cryptocurrency. This is mainly due to Brexit and the fear of a waining influence in the world. The UK will always be where the money is, simple and I have no doubt the money will eventually be in crypto.

The UK already has a self regulated crypto group called CryptoUK containing Etoro, CEX.io, BlockEx, Coinbase, Coinshares, Commerce Block and Crypto compare and they are already taking a proactive approach in staying in contact with the government.

On top of that the biggest regulatory body in the UK the MIFID (markets in financial instruments directive) have already made it clear they have no intention to regulate.

To some the UK would be a surprise given the links to the banking industry but the banking industry is on a downward trend and the UK will always, always be where the money is

It should be in the interests of every country to encourage crypto activity within their country, and to remain competitive, and not restrict access to bitcoin and crypto. Especially when you can clearly see that adoption of bitcoin and crypto are going to probably continue to pick up in the long run.

You don't want to have high taxes and discourage crypto businesses and force them out of your country.

There are absolutely no guarantees that any other country would follow in the tracks of France, or even if France will keep up with its renewed tax policies. But these developments are what other countries should look up to, imho.

The movements of France is significantly different from those of Argentina in several key respects. Let's see what the Argentinian change their mind of cryptocurrency transaction:
"The Central Bank of the Argentine Republic (BCRA) has this month eased regulations regarding automatic teller machines in the country. The (perhaps unexpected) upshot of this has been a plan to install 4000 new crypto-enabled ATMs. The new regulations do not contain any direct reference to bitcoin or cryptocurrency. Rather, they allow the installation of ATMs in non-banking establishments, such as supermarkets, shopping centers, and cinemas."

For more details, please view this source: http://bitcoinist.com/easing-regulations-bring-4000-new-bitcoin-atms-argentina/

Awesome

That's really a great move by france.I think that its time for the world nations to realize that they neither could avoid cryptos and nor could levy heavy taxes like 45%.

Its an innovative technology and if they regulate it and levy moderate taxes,then it would be a new and big source of income for them.

More european countries are likely to turn friendly towards cryptos and they too could move as france did.

Pretty incredible. Developments like this really drive a wedge on the belief that all governments hate Bitcoin. I've always welcomed countries treating Bitcoin like every other asset because that's the fairest thing to do in my opinion, but I wouldn't be opposed to friendlier-than normal taxation.

I know it's very unlikely, but I do hope other countries follow their footsteps in this.

the taxation law adjustment needs to happen everywhere because it is very unreasonable in almost all the countries around the world not just in Europe. some countries are currently taxing bitcoin twice, once when you buy it and once when you spend it. and opposite of that some countries are not taxing bitcoin at all!
it is a good initiative from Europe to start this. hopefully others will follow.

That's great news! I wish more countries implement this. More power to France. Past few weeks, I was kind of disheartened by bitcoin situation. But now things are getting better.

This is good news. France's tax breaks for encrypting money markets will attract more and more people to invest.
So I'm bullish on the prospects for the entire cryptocurrency market.

Revisiting the taxation code for using cryptocurrency is really a big leap for France. The impact on cryptocurrency holders is very positive and this may bring forth an increase numbers of people to use cryptocurrency and bitcoin. If we look into their new code on taxation on cryptocurrency we can say that it is just, fair and proper. Thanks to the researchers who made the French Government to revisit and place proper taxes to bitcoin. I salute you guys!!!

this is a great new for French bitcoin traders, also, it will help bitcoin go steady and profitable in French Market.

France is to tax gains from cryptocurrency sales as capital gains of “movable property.” The country has moved to reduce the rates from up to 45% to a flat 19%. Earlier this year, the High Administrative Court of France was seized on behalf of several taxpayers, challenging the instituted regimen, in force since July 2014, related to taxation of bitcoin and other cryptocurrency-related transactions. The Council of State also communicated that there would be “certain circumstances specific to the transaction of crypto assets which may imply that they fall under provisions relating to other categories of income”. In other words, if the capital gains have resulted from activities other than cryptocurrency-related sales but “bitcoin mining”, for example, they would fall under the category of commercial and industrial profits under the previous regimen, irrespective of whether or not the activity was occasional. Hence, these profits will be taxed at the higher rate of 45%.
Late last year, the head of AMF (France’s stock market regulator Authorité des Marchés Financiers) expressed his positivity towards the crypto field, stating that it could fulfill a legitimate business need. However, the country’s overall attitude has changed multiple times over the course of the last few months. We saw the Governor of the Bank of France calling for a higher emphasis on crypto exchanges.

Source: http://bitcoinist.com/france-slashes-cryptocurrency-taxes/

On April the 26th, the Conseil d’Etat stated that the profits generated by cryptocurrencies should be considered as capital gains. Hat means that the new regime will tax cryptocurrency profits with a flat rate of 19%, significantly lower than the previous 45%. However, including other social taxes, the amount will be higher, reaching 34,5%.

France Reduces Bitcoin Taxes
Different countries from all over the world are regulating cryptocurrencies and taxing gains on the profits investors make. But some times, the taxes paid over the profits are extremely high, like in the case of France. The tax rate could go up to 45%. France is one of the most important countries in the European Union. This decision may be very important to leave a precedent in taxing Bitcoin and cryptocurrencies. Other countries may follow France’s decision to reduce the taxes applied to gains related to trading virtual currencies. Burno Le Maire, the French Finance Minister, called for worldwide crypto regulations in the past, but he also expressed his support for the crypto-space.

Mr Le Maire explained:

“These new financial technologies bring promises but, at the same time, they bring risks: terrorism financing, money laundering activities and speculation. That’s why we must define a framework in which these new technologies could develop in a safe way for countries and nations.”

At the same time, during the G-20 Financial summit that took place in Buenos Aires the last March, he said that France has interest to become one of the first major financial centres in the world to propose an ad hoc legislative framework for companies making Initial Coin Offerings.

It is clear that France knows what it is doing. The authorities are trying to remain competitive in a market that is very active. Germany is also taking further steps in order to attract crypto investments. For example, the German Finance Minister, explained that individuals that will use virtual currencies as a means of payment will not have to pay taxes on them. Moreover, a new cryptocurrency exchange for wealthy investors has been opened in German territory, allowing important individuals and enterprises invest safely in cryptocurrencies within a regulated exchange.

Source: https://usethebitcoin.com/france-changes-tax-laws-on-bitcoin-from-45-to-19-on-capital-gains/

Well, i think that one of the more significant findings to emerge from France's reaction is that it could lead to the wave of tax reduction in Europe. These actions contribute in several ways to our understanding of continued competition among European countries in attracting cryptocurrency investments in the time to come and provide a basis for other countries to follow, such as: America, China, Korea etc.
Now, the question is: who will follow France? I would like to have your thought.