You are at: Home » France will tax Bitcoin earnings but the rules don’t apply to everybody

France will tax Bitcoin earnings but the rules don’t apply to everybody

Author
Last updated on:
Fact Checker

France might not be ready to recognize Bitcoin as a form of currency, but the country is apparently ready to tax the revenue generated by cryptocurrency transactions. The information was recently revealed by the French Ministry of Economy and Finance. 

However, according to the country’s law, the rules are not black and white. The tax will only apply to individuals that are able to turn a constant flow of Bitcoin trading into regular earnings. “For the time being, there is no declarative obligation in what concerns Bitcoin”, a ministry spokesperson told the newspaper Le Monde.

All taxpayers are required to declare all their revenues, including those originating from abroad. This said, there is a certain tolerance [from the state authorities] regarding minor and irregular revenues, for instance from occasional sales.

800px-Bank_of_france_-_Grenoble
Bank of France

The news is announced months after the Bank of France issued a warning about the risks related to the adoption of cryptocurrency. “Even if Bitcoin is not currently a credible investment vehicle and therefore do not pose a significant risk to financial stability, they represent a financial risk for those who hold them”, the central bank explained in a statement, quoted by PFHub.

For now, the newspaper Le Monde says that the French Bitcoiners will have to identify themselves as professional traders in case they are involved in regular transactions. The banks will apparently “invite” the clients that own Bitcoins to explain the origins of their digital fortune.

“Once there is enrichment, you must inform the IRS”, says Daniel Gutmann, a lawyer at CMS Bureau Francis Lefebvre.

Images from Wikimedia

Maria is an experienced journalist currently living in the UK. She has been writing about Bitcoin and the altcoin universe since 2013. She is also a member of the Lifeboat Foundation's New Money Systems Board and a big cryptocurrency supporter.

View all Posts by Maria Santos

Free Bitcoin Crash Course

Learn everything you need to know about Bitcoin in just 7 days. Daily videos sent straight to your inbox.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
We hate spam as much as you do. You can unsubscribe with one click.
We hate spam as much as you do. You can unsubscribe with one click.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top