The French National Assembly has postponed the vote on the revenue section of the 2027 state budget for the second time, while separately rejecting two proposals that would have applied exit taxes to unrealized crypto gains when taxpayers transferred their tax residence abroad.
According to the Assembly's end-of-session notice following Monday's sitting, Tuesday's agenda includes continued debate on the budget's revenue section with 758 amendments still pending examination. The vote was originally scheduled for Oct. 20 but was postponed with more than 2,000 amendments awaiting debate, French newspaper Le Monde reported.
The National Assembly has until midnight on Nov. 17 to complete its first-reading examination. If the revenue section is rejected, the government's original budget proposal will move to the Senate without the amendments adopted by MPs.
On Friday, lawmakers rejected two proposals concerning crypto exit taxes. The first, which sought to include crypto assets in the country's existing exit tax regime, was defeated with 27 votes in favor, 55 against and one abstention. A separate proposal was rejected 31 to 60. It would have taxed unrealized gains on household crypto holdings worth more than €800,000 ($897,000) when taxpayers transferred their tax residence outside the country, provided they had been tax-resident in France for at least six of the preceding 10 years.
Other crypto-related proposals await debate, including a requirement to report self-custodied crypto holdings worth a combined value of at least €100,000 ($112,000) to tax authorities, based on their value at year-end. Another proposal would exempt gains on crypto payments for goods and services from tax if the total value of those payments does not exceed €1,000 ($1,120) during the tax year.
Lawmakers approved a proposal on Oct. 16 to tax gains when crypto assets are converted into fiat-pegged stablecoins. The measure has not become law.
Analysis
Why This Matters
- France's budget delays signal political gridlock that could affect economic stability and investor confidence in the eurozone's second-largest economy.
- The rejection of crypto exit taxes is a clear signal that France is not yet ready to tighten crypto taxation for expatriates, contrasting with other EU countries that have introduced such measures.
- Pending proposals on reporting self-custodied crypto and exempting small crypto payments could shape France's broader crypto regulatory framework.
Background
France has been grappling with its 2027 budget amid a high number of parliamentary amendments. The National Assembly, the lower house of the French Parliament, is currently reviewing the budget's revenue section, with a deadline of Nov. 17 for the first reading. Crypto taxation has become a notable point of contention, with lawmakers weighing measures to capture gains from digital assets while some proposals aim to support smaller crypto transactions.
Key Perspectives
French lawmakers (proponents of crypto exit tax): argued that crypto assets should be included in the existing exit tax regime to prevent tax avoidance when residents move abroad with unrealized gains.
French lawmakers (opponents of crypto exit tax): voted down the proposals, viewing them as potentially discouraging investment or overly burdensome.
What to Watch
- Whether the National Assembly meets the Nov. 17 deadline for the first-reading examination of the budget.
- The fate of the pending proposals on reporting self-custodied crypto holdings and the exemption for small crypto payments.
- Whether the Oct. 16 proposal to tax stablecoin conversions gains traction in future legislative steps.
Checked
12 claims in this story checked against 1 source: 12 supported.
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- SupportedThe National Assembly postponed the vote on the budget’s revenue section for the second time.Cointelegraph.com News: “The National Assembly postponed the vote on the budget’s revenue section for the second time”
- SupportedLawmakers rejected two proposals that would have applied exit taxes to unrealized crypto gains when taxpayers transferred their tax residence abroad.Cointelegraph.com News: “The National Assembly rejected two proposals on Friday that would have applied exit taxes to unrealized crypto gains when taxpayers transferred their tax residence abroad.”
- SupportedThe Assembly’s end-of-session notice said Tuesday’s agenda included continued debate with 758 amendments pending examination.Cointelegraph.com News: “According to the Assembly’s end-of-session notice following Monday’s sitting, Tuesday’s agenda includes questions to the government and continued debate on the budget’s revenue section with 758 amendments still pending examination.”
- SupportedThe vote was originally scheduled for Oct. 20.Cointelegraph.com News: “the original Oct. 20 vote was postponed”
- SupportedMore than 2,000 amendments were awaiting debate when the original vote was postponed.Cointelegraph.com News: “the original Oct. 20 vote was postponed with more than 2,000 amendments awaiting debate”
- SupportedThe Assembly has until midnight on Nov. 17 to complete its first-reading examination.Cointelegraph.com News: “The National Assembly has until midnight on Nov. 17 to complete its first-reading examination.”
- SupportedIf the revenue section is rejected, the government’s original budget proposal will go to the Senate without amendments adopted by MPs.Cointelegraph.com News: “If the revenue section is rejected, the government’s original budget proposal will move to the Senate without the amendments adopted by MPs.”
- SupportedThe first crypto exit-tax proposal received 27 votes in favor, 55 against and one abstention.Cointelegraph.com News: “Lawmakers rejected the first proposal with 27 votes in favor, 55 against and one abstention”
- SupportedThe first proposal sought to include crypto assets in the country’s existing exit-tax regime.Cointelegraph.com News: “The proposal sought to include crypto assets in the country’s existing exit tax regime.”
- SupportedThe separate proposal was rejected with 31 votes in favor and 60 against.Cointelegraph.com News: “A separate proposal was rejected with 31 votes in favor and 60 against.”
- SupportedThe separate proposal would have taxed unrealized gains on household crypto holdings worth more than €800,000, subject to the stated tax-residency condition.Cointelegraph.com News: “It would have taxed unrealized gains on household crypto holdings worth more than 800,000 euros ($897,000) when taxpayers transferred their tax residence outside the country, provided they had been tax-resident in France for at least six of the preceding 10 years.”
- SupportedA pending proposal would require reporting self-custodied crypto holdings worth at least €100,000 in total, based on their year-end value.Cointelegraph.com News: “including a requirement to report self-custodied crypto holdings worth a combined value of at least 100,000 euros ($112,000) to tax authorities, based on their value at year-end.”
