The French Council of State announced on Thursday that profits arising from cryptocurrency sales should be considered as capital gains of "movable property" - a decision that will see the tax rate levied drop significantly.
Currently, gains from the sale of cryptocurrency trading are normally considered "industrial and commercial profits" (BIC), while those from occasional transactions are treated as "non-commercial profits."
It follows that tax on crypto gains can be as high as 45% for higher-band taxpayers, and that's also in addition to the country's generalized social contribution (CSG) of 17.2%.
Classifying cryptos as movable property (as the name suggests, these are assets that are not fixed in place like buildings), however, brings a flat CGT liability of 19 percent, plus CSG.
The Council of State also said certain types of transaction may however "fall under provisions relating to other categories of income," and that proceeds from cryptocurrency mining as well as commercial activities related to the technology will still be taxed at the BIC rate.