In the case of submission to the marginal bracket of the income tax schedule, this treatment can lead to a tax level excluding social security contributions of more than 45%. A visit to www.androidheadlines.com makes things perfect.
Pact Act: What it changes for your savings
In its decision, the Council of State adopts a different approach, which leads to partially invalidate the administrative doctrine, considering that:
To the extent that the bitcoin units are in the nature of intangible personal property, the gain arising from their sale is in principle subject to the capital gains tax on the transfer of movable property provided for leading to apply to the capital gain a reduction of 5% for each year of detention beyond the second, before submitting it, to an income tax rate of 19% and social security contributions of 17.2%.
Two clarifications must be made
- The disposals for a price lower than 5.000 dollars are exempted.
- The losses recognized in previous disposals of the same nature are not chargeable to the capital gains subsequently recognized.
This system proves to be more advantageous than the regime resulting from the administrative comments in the event of submission at the marginal rate of the progressive scale, subject to the deduction of the losses.
Specific obligations
The assignment may, however, fall within:
- The NCBs, where the bitcoin assigned even in the case of a single assignment was the counterpart of the taxpayer’s participation in the creation or operation of the virtual unit of account system: this case concerns the bitcoins generated by mining.
- BICs, in the case of profits derived from the usual exercise of a business of selling bitcoin units acquired for resale, including when the assignment takes the form of an exchange for property furniture which amounts to confirming the administrative doctrine on this point.
- After application of the progressive income tax scale according to the real or micro system, the marginal taxation of these two types of income can reach 45%, to which should be added the social security contributions and, where appropriate, the social security contribution. It has exceptional contribution on high income of 3 or 4%.
- The classification of gains from the sale of bitcoins according to the capital gains tax regime for the sale of movable property makes the transferors responsible for relatively precise obligations.
In fact, the transferor, in order to determine the taxable capital gain, wills not only have to indicate the transfer price and the purchase price of the bitcoins sold, and if he wishes to benefit from the reduction for holding period the date of acquisition of the bitcoins transferred.
Moreover, it is important to remember that the taxpayer is required to spontaneously deposit with his tax office a specific declaration in the month following the transfer, accompanied by the payment of the corresponding tax.
Part of the Taxpayers
With regard to taxpayers who have been taxed on the progressive income tax scale by reason of gains made prior to the decision of the Counsel, they may, if they have an interest and provided that they do not fall within categories of NBC mining or those of BIC purchase or resale, file a contentious claim in order to obtain the relief of the additional cost of tax resulting from the application of the administrative doctrine.