According to a French news website, France’s lower house of parliament (Assemblée Nationale) has backed a proposed plan from its finance commission which will effectively bring the taxes on bitcoin gains in line with other capital gains taxes in the country. At present, bitcoin sales are taxed about 20 percent more than traditional capital gains or sales of stocks and other securities.
The bill is spearheaded by Eric Woerth, the body’s finance committee chairman. It effectively brings the tax rate for bitcoin sales from more than 36 percent to the flat 30 percent that other capital gains sales pay. It was, however, not enough for some French citizens, one of whom said that the previous and proposed taxes both inhibit innovation.
Il aurait fallu et oser faire comme les autres pays européens, si vous voulez attirer les investisseurs. Au pire 11.5% était très bien.
Il ne faudra pas vous étonner de rater le virage de la blockchain comme ce fût le cas de l’internet. Trop de taxe tue l’économie du pays.
— Thysdrus (@Thysdrus1) November 7, 2018
Tax Also Applies to Bitcoin Purchases
According to French outlet Le Figaro, the tax would not only apply to strict sales of bitcoin such as using LocalBitcoins or Coinbase to realize profits but would also apply to using bitcoin to buy things, e.g., when “used as a means of payment for acquisition of goods or services.”
France is far from the only jurisdiction to tax bitcoin in this way, but the regressive method of taxation arguably stifles a technology that securely provides citizens of said jurisdictions a secure and powerful way to shop. More to the point, when a person uses bitcoin to purchase a product they are not getting real-world value in the same way as a regular market sale of coin — they cannot immediately turn around and re-invest if the market takes a dive,