France weighs 31.4% tax on stablecoin trades under 2027 budget bill
CIE News ·
Based on reporting by Forbes; not yet independently confirmed.
France's National Assembly approved a preliminary vote to end tax deferral on crypto-to-stablecoin swaps, which would subject trades to a 31.4% flat tax from Jan. 1, 2027.
France's National Assembly voted 38 to 37, with 25 abstentions, on Oct. 16 to adopt Amendment I-3898 to the 2027 budget bill, according to KuCoin. The proposed measure would end the existing tax deferral on cryptocurrency swaps involving e-money tokens, which are single-currency stablecoins defined under the European Union's Markets in Crypto-Assets framework. If the measure becomes law, trades such as converting Bitcoin (BTC) or Ether (ETH) into compliant stablecoins like Circle's USDC would incur a 31.4% flat capital gains tax starting Jan. 1, 2027.
Under current rules, French investors defer tax obligations until digital assets are converted into fiat currency. The amendment also eliminates the portfolio-wide calculation method for capital gains, instead figuring the cost of each sold asset individually using the average price paid. In the same sitting, deputies also voted 75 to 18 to reject a 10-year loss carryforward, CryptoPotato reported.
The measure has not been enacted into law and faces further parliamentary debate ahead of November deadlines. Public Accounts Minister David Amiel requested the amendment be withdrawn, arguing that officials must first define stablecoins and ensure the state can trace internal portfolio reallocations. Finance committee rapporteur general Philippe Juvin also supported preserving the tax deferral due to crypto market volatility.
Key facts
- Amendment I-3898 debated
- 31.4% flat capital gains tax
- Proposed start: Jan. 1, 2027
- Preliminary vote passed 38-37