Making money in any way, shape, or form with bitcoin and/or digital currency? French tax authorities have made it clear they want to know about it.
The country’s Ministry of Economy has said they don’t recognize bitcoin as a currency, but they expect citizens who generate any sort of revenue from their use to update tax authorities and pay any appropriate tax on revenues earned through the use of digital currency.
Under French law, however, individuals who aren’t earning a living involving bitcoin usage have some wiggle room.
A spokesperson from the French ministry told Le Monde (via CoinDesk):
[blockquote style=”2″]All taxpayers are required to declare all their revenues, including those originating from abroad. This said, there is a certain tolerance [from the state authorities] regarding minor and irregular revenues, for instance from occasional sales.[/blockquote]
Despite the fact hard rules on the taxation of bitcoin don’t yet exist in the country, it seems as if this would just be a common sense approach.
The price of living in civilized society is to pay taxes. Therefore, revenues coming in are subject to tax. Be it from bitcoin or by selling home made goods on a street corner.
The United States has taken a similar approach to the taxation of bitcoin, but with a twist.
Last month, the Internal Revenue Service issued guidance on bitcoin taxation, making it supremely clear that revenues from use of the digital currency should be reported. They also noted that digital currency assets should be treated as property, which for many in the community was (and continues to be) an unpopular stance.
