France postpones 2027 budget vote, crypto exit-tax proposals scrapped

The French National Assembly will continue debating the revenue section of the 2027 state budget on Tuesday instead of holding a planned vote.

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.

This marks the vote’s second delay, after the original Oct. 20 vote was postponed with more than 2,000 amendments awaiting debate, according to French newspaper Le Monde.

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.

Related: EU investors rank crypto above retirement plans for lasting wealth creation: OKX survey

France rejects crypto exit tax proposals 

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.

Lawmakers rejected the first proposal with 27 votes in favor, 55 against and one abstention, according to the Assembly’s official voting record. The proposal sought to include crypto assets in the country’s existing exit tax regime.

A separate proposal was rejected with 31 votes in favor and 60 against. 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. 

Other crypto-related proposals await debate, 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.

Another proposal would exempt gains on crypto payments for goods and services from tax if the total value of those payments doesn’t exceed 1,000 euros ($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.

Magazine: Can the SEC and CFTC’s pro-crypto rules be overturned? Legal opinion