France should become the first country that will offer an attractive and complex system of cryptocurrency taxes, claimed France finance Minister, Bruno Le Mer, during the French Securities Regulator conference.
“We are working on an attractive fiscal system for crypto assets. Income from capital [from cryptocurrency operations] will be taxed using PFU method (Prélèvement Forfaitaire Unique, so-called “flat tax” — FT). However, cryptocurrency to cryptocurrency transactions will not be taxed. Such benefit will be applied to small transactions”,
– he claimed.
PFU tax has a flat rate of 30%, it will start operating for income from crypto investments in 2019. Finance Minister also noted that yearly tax deduction for small transactions will equal 305 euros.
“Financial policy of the state can be described in 3 words: attractiveness, innovation and stability. We want to make Paris the leading financial center of Europe. We should keep balance between innovations nad safety of the citizens. A tax deduction is essential to avoid excessive fiscal pressure of the taxpayers, who operate small sums”,
added Bruno Le Mer.
The official also underlined that thanks to the decision of the Financial Market authority, blockchain startups that are conducting ICOs will have access to banking services. Companys registered in a special registry of the regulator could use that.
“It is impossible to regulate a new technology using old laws”, concluded Bruno Le Mer.