French National Assembly Delays 2027 Budget Vote Amid Stalled Crypto Exit Tax Debates

The French National Assembly has announced that it will continue debating the revenue section of the 2027 state budget on Tuesday, pushing back a planned formal vote as lawmakers navigate a massive backlog of pending amendments. According to the Assembly’s official end-of-session notice published following Monday’s sitting, Tuesday’s legislative agenda will feature the traditional question-and-answer session directed at members of the government, immediately followed by the resumption of budget deliberations.

Lawmakers face a daunting task as they return to the chamber, with 758 amendments still awaiting formal examination. This latest development marks the second major delay for the crucial revenue vote. The initial vote, originally scheduled for Oct. 20, was previously postponed when more than 2,000 amendments remained stuck in debate queues, according to reporting by French newspaper Le Monde.

Under the strict procedural calendar of the French parliament, the National Assembly operates under a hard deadline. Lawmakers have until midnight on Nov. 17 to complete their first-reading examination of the revenue section. Should this critical portion of the budget be ultimately rejected by the Assembly, the government’s original, unamended budget proposal will be automatically forwarded to the Senate. In such a scenario, the bill would proceed without any of the localized amendments successfully adopted by members of parliament during the tumultuous committee and floor debates.

The prolonged legislative gridlock comes at a time of intense scrutiny over fiscal policy and taxation, particularly regarding emerging financial sectors such as digital assets. While the overarching debate concerns the entire architecture of the 2027 state budget, a series of high-stakes votes regarding cryptocurrency regulations has thrust the digital asset ecosystem directly into the legislative spotlight.

France Rejects Crypto Exit Tax Proposals

In a series of decisive votes last week, the French National Assembly formally rejected two distinct proposals that sought to introduce exit taxes on unrealized cryptocurrency gains for taxpayers choosing to transfer their tax residence abroad. The legislative decisions reflect a cautious approach by lawmakers toward taxing digital assets that have not yet been converted into traditional fiat currency.

According to the Assembly’s official voting record, the first of these defeated proposals was rejected after securing 27 votes in favor, 55 against, and one abstention. This specific measure aimed to incorporate cryptocurrency assets directly into the country’s already established exit tax framework, treating digital holdings similarly to traditional securities and property when individuals relocate outside of French jurisdiction.

A separate and more targeted proposal met a similar fate, being rejected by a margin of 31 votes in favor to 60 against. Had it passed, this measure would have imposed taxes on unrealized gains specifically concerning household crypto holdings valued at more than 800,000 euros, equivalent to approximately $897,000. The rule would have applied when taxpayers transferred their tax residence outside of France, provided that the individuals in question had maintained a recognized tax residency status within the country for at least six of the preceding ten years.

Despite the rejection of these specific exit tax measures, the broader debate surrounding cryptocurrency taxation is far from over. Several other crypto-related proposals remain on the table and await future debate in the National Assembly. Among these pending measures is a controversial reporting requirement that would compel individuals to declare self-custodied crypto holdings with a combined aggregate value of at least 100,000 euros, or roughly $112,000, directly to French tax authorities based on their evaluated worth at the end of each calendar year.

Another pending proposal offers a potential exemption for everyday crypto users. This measure would exempt gains realized on cryptocurrency payments used for the purchase of goods and services from taxation, provided that the total value of those transactional payments does not exceed 1,000 euros, or approximately $1,120, over the course of the given tax year.

The parliamentary battles follow an earlier legislative action on Oct. 16, when lawmakers approved a proposal designed to tax capital gains specifically when crypto assets are converted into fiat-pegged stablecoins. Despite receiving approval during that particular session, the measure has not yet formally become law as it awaits the completion of the broader budgetary and legislative process.

As the National Assembly resumes its grueling schedule on Tuesday to work through the hundreds of remaining amendments before the mid-November deadline, the future of both the national budget and the country’s evolving digital asset tax framework remains hanging in the balance.