Crypto taxation: European Parliament adopts new systems

Fiscalité crypto : le Parlement Européen adopte de nouveaux systèmes

The European Parliament is hard at work on crypto, agreeing on a new tax system for both users and authorities.

Universal Crypto Taxation Coming Soon?

Taxation of crypto is still very much debated in European Union governments. While France is distinguished by high taxation, and Germany manages on its own, the European Parliament preferred to coordinate everything.

During a meeting held yesterday, the various regulators discussed together the taxation applicable to all countries of the European Union. According to the press release published by the parliament, nearly 566 votes were in favor of the motion against only 7 votes against. For the time being, few elements are provided regarding future taxation. According to the document, the tax will currently only be applicable to tokens converted to fiat currency. In addition, it should be favorable for small traders as well as casual cryptocurrency users. Nothing has been specified regarding the companies and it may be that the situation will change in case of global adoption.

It will also be necessary to wait some time before we see this new taxation implemented. According to parliament, the first step for regulators will be to examine the taxes applied in different countries to identify a compatible model for all territories. Crypto-assets will also need to be defined, suggesting the European Union could engage in heated debates on the subject.

Finally, the European Parliament intends to modernize its tax system thanks to blockchain.

Blockchain’s unique features can offer a new way to automate tax collection, curb corruption, and better identify ownership of tangible and intangible assets.

Excerpt from the press release of the European Parliament.

Therefore, different European administrations may need to change their collection system in the coming years.

In France, ADAN remains cross-border taxation

In August, the blockchain association ADAN announced that it wanted to offer other tax alternatives to the government. This has already been done since the latter were discussed in the month of September. According to BFM Crypto ADAN would like to reduce the 30% tax imposed on digital currency investors. Therefore, they will only apply in the event of termination of rights.

Similarly, simplified taxation for employees receiving cryptocurrencies would also be proposed. In this case, the tax would only be necessary when exchanging tokens for money. However, the amendment is still very unclear regarding the fate of employees who receive their entire salary in crypto. For now, the issue is still under discussion and the government has not yet decided on possible changes.

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