Gabriel Attal, the Prime Minister of France, has announced that there will be a potential new tax on income, but it is not yet clear if it will also involve cryptocurrencies.
Gabriel Attal and the new taxation on income by June in France: will cryptocurrencies also be involved?
Gabriel Attal, the Prime Minister of France, announced to the Renaissance group of the National Assembly that he intends to present a new proposal for taxing income by June.
The goal is to reduce the country’s deficit, although it is not yet clear if the new taxation will involve income from the crypto sector.
𝗙𝗟𝗔𝗦𝗛 : Le Premier ministre Gabriel Attal a annoncé sa volonté de mettre en place d’ici au mois de juin des propositions pour une taxation des rentes, afin de désendetter le pays. Les détenteurs d’assurance-vie ou de livrets A pourrait être taxés.
Pour rester informé,… pic.twitter.com/OngdnLZs2W
— Les Spectateurs (@les_spectateurs) April 2, 2024
“Prime Minister Gabriel Attal has announced the intention to present a proposal for taxing income by June to reduce the country’s debt. Holders of life insurance policies or Livret A savings accounts could be taxed.”
Apparently, in France everyone is therefore on the move to understand which categories will be most affected, including the community of crypto holders and traders.
Probing the ground, there is BFM TV which seems to have received confirmation from Attal himself that taxation will not affect individuals:
Gabriel Attal assure que “les particuliers ne seront pas touchés” par la taxation des renteshttps://t.co/gUFLHpA1dR pic.twitter.com/PABhrPVE90
— BFMTV (@BFMTV) April 5, 2024
“Gabriel Attal assures us that individuals will not be affected by the taxation of income”
Gabriel Attal and taxation on income (possibly also crypto) to reduce France’s deficit
Attal’s new proposal for taxing income (possibly including crypto) aims to reduce the country’s deficit.
In this regard, it seems that the French government aims to reduce the deficit to 3% of GDP by 2027, instead of the 5.5% recorded in 2023.
Anyway, there is already a crypto tax in France existing. In practice, in France any capital gains resulting from the sale of digital assets such as Bitcoin or other cryptocurrencies are taxed as industrial and commercial profits (BIC), if they are part of the usual practice.
Regarding occasional capital gains, i.e. those generated by private individuals, in France the article 41 of the 2019 financial law is followed.
According to article 150 VH bis of the TUF, capital gains generated overall during the fiscal year are taxable only if the total sales exceed €305. This is such a low threshold that practically all capital gains are taxable.
The AMF survey on crypto adoption in France
In late 2023, the Autorité des Marchés Financiers (AMF) conducted a survey that revealed that 9% of adults in France are actively involved in the thriving realm of crypto investment adoption.
In the survey, over a thousand new retail investors were involved, revealing that the distinctive trend for the crypto sector is more evident among young people, with 24% of French adults participating in various financial instruments.
This trend indicates a generational shift in investment preferences, with a clear move towards digital financial solutions.
With an average age of 36 and a substantial representation under 35 years old, these new investors have a diverse and youthful profile.