Crypto

Crypto: study compares taxation of different countries

The French government is very supportive of taxes on cryptocurrencies. Recently, laws and regulations have been passed in France to promote the taxation of cryptocurrencies. If France is not against the development of crypto assets: the study shows that the country lacks certain key points to make the country competitive in this sector.

Tax pressure on cryptocurrencies in France

Coinclub publishes a yearly report on which countries have the best cryptocurrency tax policies. The report estimates the total costs, such as transaction fees and taxation, in each country and ranks accordingly.

The study claims that France will make efforts to develop the sector but will still face high taxes on cryptocurrencies as the French are subject to high taxes when their crypto holdings cross the €305 threshold. Crypto traders and investors in France are taxed between 30% and 45%. Coinclub believes that France should be avoided for now. They claim that the country has a negative tax score, which puts it in 49th place in the ranking.

France has just begun to explore cryptocurrencies, the government has only recently begun to support the development of web3. Therefore, this study should not be taken as a bad omen. On the contrary, it should be seen as evidence of France’s growing interest in cryptocurrencies.

The Adana Association offered to take part in the discussion of amendments to the finance bill to further discuss the laws on taxes on cryptocurrencies. They hope to reach a final agreement on these taxes, which will be formally implemented after the publication of the law.

The French Treasury holds cryptocurrencies in high regard, and they have repeatedly expressed their enthusiasm for this technology. In fact, the Deputy Director of the French Treasury, Pierre Chabrol, has a vision to make France the center of cryptocurrency innovation. Coinclub’s 2023 report will tell us if it has managed to achieve its goals.

Taxation in other countries

The report includes the latest regulatory changes for each country. In the 2022 version of the report, Coinclub stated that Germany has the most favorable cryptocurrency tax laws for investors. It is estimated that probably 44% of the German population is investing in the crypto industry.

Also, on the other side of the Rhine, the government recently announced that profits from cryptocurrencies held for at least one year will be zeroed out. Belgium is considered the worst country for cryptocurrencies due to taxes on winnings and transactions up to 50%.

Behind Belgium there are unexpected countries:

  • Iceland: 40% tax on winnings over $7,000. The scale is progressive, with the highest income level reaching 46%.
  • Israel: Also on a sliding scale, up to 33%.
  • Philippines: 35% tax on winnings over $4,500.
  • Japan: Progressive with tax rates ranging from 5% to 45% depending on income level.

The report states that the two states most lenient on cryptocurrency taxation are the Bahamas and Bermuda. In the Bahamas, tax liabilities are few and at best declarative. For individuals, there is no capital gains tax, while for professionals it is a flat, negligible minimum.

On the old continent we find Belarus with favorable taxation. The country took a stand against its neighbors in 2018 by legalizing cryptocurrencies and stablecoins and exempting individuals and professionals from capital gains tax until 2023.

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