France crypto law follows Portugal crypto tax free announcement
As the world begins to more greatly adopt Blockchain technology and cryptocurrency, some countries stand out for their low-lying regulations and interest in innovation. With the US and UK holding their tax walls high, America incurring 10 to 37% tax on capital gains of cryptocurrency, it has left the rest of the world with a lot of leeway to welcome in these businesses and their profits. The EU has shown great interest in adopting cryptocurrency, offering an open mind and a great commonwealth approach. The mindset of Europe is extremely inclusive, accounting for many countries, they work to offer all their people the best opportunities. From single-use plastic bans to gender studies being re-conducted and supermarkets feeding the homeless, we see the EU evolving beyond borders as they set out to create a happier and healthier earth for all. Their constant drive to innovate their industries has given them the ability to look at the future with arms wide open, as Blockchain technology revolutionizes every sector, cryptocurrency is another big step they are looking to take. Many EU countries have already adjusted regulations to adopt cryptocurrency, the EU even going as far as to commission a study for the Central Bank of Europe to allow for cryptocurrency holdings. Belarus, Malta, Slovenia, and Germany all offer little-to-no taxation on cryptocurrency transactions. Belarus offers tax breaks on cryptocurrency income, including mining and trading profits, while Germany does not tax cryptocurrency tokens long-held for more than a year. Even if not completely tax free, these countries are creating a less harsh environment for cryptocurrency and their people to grow.
France crypto law and Portugal crypto tax free trading
As stated above, many countries have been stepping forward to facilitate the growth of cryptocurrency, two more well-known destinations are joining the list. The first announcement of adoption was made in regards to the Portugal crypto tax free laws, first released by the Portuguese business newspaper, Jornal de Negócios. The news shone a light on the laws of Portugal and how cryptocurrency fits in. The new laws entail no taxation on crypto trading incomes, as well as exempting cryptocurrency exchanges and payments from Value Added Tax (VAT). A representative made it simple in the below statement:
“Portugal does not tax the increase of value of any currency nor the gain on the sale of any currency.”
The Portugal crypto tax free law will see a lot of events and businesses driving attention and capital to Lisbon, the capital of Portugal, which has already seen The Web Summit accumulate more than 80 000 new tourists. The loss of crypto VAT will also allow visitors to spend their cryptocurrency tokens at a fraction of the price and without fear. We find more support and verification in:
“Cryptocurrencies are no different from a Portuguese tax perspective. Accordingly, the appreciation of cryptocurrencies or any gains on the direct sale of cryptocurrencies are not taxed in Portugal.”
The other country tackling their tax issues, we see the France crypto law talking about the taxation of cryptocurrency tokens and their profits. The announcement was made a few days after Portugals, although their decisions may not be linked, it increases the chances of other countries adopting the technology. The French economy minister, Bruno Le Maire, went on to describe that the France crypto law will exempt crypto-to-crypto transactions of taxation. This means you may trade and profit on cryptocurrency, the tax will only occur once a person tries to withdraw their cryptocurrency into fiat. VAT is generally Value Added Tax which is added to the end total of a product and because a cryptocurrency has no end price, it can not be taxed accordingly. This is where the France crypto law comes into play, as people will be taxed on the amount they sold their cryptocurrency for vs the fiat price they withdrew it at. Le Maire had this to say in backing up their beliefs:
“We believe that the moment the gains are converted into traditional money is the right time to assess tax.”
The power of cryptocurrency
Even if the Portugal crypto tax free law doesn’t directly affect you, it opens up greater opportunities for the adoption of Blockchain technology. Blockchain technology is a key aspect of what makes cryptocurrency such a revolutionary system. Cryptocurrency is built on Blockchain technology, to ensure a secure, speedy and transparent way of transferring money. All transaction information is encrypted and incorruptibly stored on Blockchain. Blockchain technology is far more capable than evolving our economies, Blockchain is going to revolutionize the world in a secure and transparent manner. The technology could take over businesses, governments, and the digital world. Ensure financial freedom for yourself by getting involved in cryptocurrency, find growth in global currencies. Learn about and stay updated on everything cryptocurrency and Blockchain by following the lower link. Your future starts here: Unisile.