France's National Assembly has rejected several tax amendments aimed at providing benefits to cryptocurrency traders and users, according to local media reports.
Key Rejected Proposals
Increased Annual Tax Allowance
One proposed amendment sought to raise the annual tax-free allowance from €305 (~$347) to either €5,000 or €3,000. The Assembly maintained that "€305 is already quite sufficient," stating that compared to securities taxation, "an increase to €5,000 or €3,000 appears particularly excessive."
Capital Gains Taxation
Another rejected amendment would have allowed cryptocurrency capital gains to be taxed under the same conditions as securities under current regulations. The Assembly also voted down proposals that would have:
- Distinguished between regular crypto-related activities and occasional transactions (which would have qualified for more favorable tax treatment)
- Addressed cryptocurrency capital losses
Tax Trigger Point
Amendment 16a was rejected despite its proposal to only tax cryptocurrencies when:
- They're sold
- Proceeds are withdrawn to bank accounts
This would have replaced the current system that taxes based on exchange-to-fiat conversion value.
Current Crypto Tax Landscape
France maintains its existing crypto taxation framework:
Current crypto asset tax rate: 36.2%
- 19% income tax
- 17.2% social contributions
👉 Understanding crypto taxation in Europe
A proposed 30% flat tax on crypto transactions (which would have aligned crypto with other non-real estate capital gains) remains part of Article 16B but wasn't included in Monday's deliberations. Assembly members noted that "the flat rate has been positively received for its simplicity and legal certainty."
Historical Context
Reuters previously explained France's tax treatment:
- Bitcoin profits currently taxed at 36.2%
- Other non-property capital gains taxed at 30%
In 2019, the Finance Committee passed amendments to include crypto asset sales under the 30% flat rate, though these changes weren't implemented for cryptocurrencies.
FAQ Section
Why were the crypto tax amendments rejected?
The National Assembly deemed the proposed benefits excessive compared to existing securities taxation and maintained that current crypto tax rates are appropriate.
What is France's current crypto tax rate?
Cryptocurrency transactions are taxed at 36.2%, comprising:
- 19% income tax
- 17.2% social contributions
How does France's crypto tax compare to other capital gains?
Other non-property capital gains are taxed at 30%, while crypto maintains a higher rate of 36.2%.
👉 Global crypto tax comparison guide
Will there be future attempts to change crypto taxation?
While Monday's session rejected these amendments, discussions about aligning crypto with the 30% flat rate for other capital gains may continue in future legislative sessions.