French economy minister Bruno Le Maire has stated that crypto-to-crypto trades will be tax-exempt, according to a report by Bloomberg. Instead, France will only tax cryptocurrency gains when they are converted into “traditional” currencies.
“We believe that the moment the gains are converted into traditional money is the right time to assess tax,” Le Maire said. Le Maire also added that the country’s value-added tax (VAT) will only be assessed when a cryptocurrency is to purchase a good or service.
France’s decision comes after reports that Portugal’s tax authority determined cryptocurrency trading and payments in the nation are tax-free.
Cryptocurrency trading and payments in Portugal are tax-free, the European country’s tax authority has clarified.
Local business newspaper Jornal de Negócios reported the news earlier this week, saying that the authority has said that both cryptocurrency trading in real currencies and remuneration in cryptocurrencies are exempt from value-added tax (VAT).
The agency reportedly provided the clarification to a local cryptocurrency mining company, in an official ruling document.
There is also no income tax on cryptocurrency earnings in the country, per the report.