The Assembly of the Portuguese Republic today rejected the proposals to tax Bitcoin and the various existing cryptocurrencies. The ECO blog, which follows the live debates, reported that this idea was put forward on Wednesday afternoon during the budget session, but was quickly rejected.
Initially it was the subject of the proposal tax all cryptocurrencies for profits over € 5,000. Exemption from crypto-currency tax exemptions. So Portugal has been a tax haven for crypto since 2018.
Antonio Mendonça Mendes, the country’s Deputy Minister for Finance and Fiscal Affairs, also indicated during this same budget session in Parliament that a tax on profits may not be enough. This is how the Portuguese government might consider charging VAT or other similar taxes on cryptocurrencies.
For now, trading digital assets is not investment income within Europe. As a result, Lisbon is the capital of excellence for startups and crypto – related events. Of course, these companies that agree to be paid in cryptocurrencies must pay income tax.
Finally, it is not just one proposal but two that were proposed during the vote on the state budget for 2022 that began on Monday. This is due to end on 27 May. These texts were issued by parliamentarians from a minority party. They are no longer on the agenda.
What about the future?
Despite this rejection, this does not mean that no proposal to tax crypto-currencies will see the light of day again. Taxation of cryptocurrencies is a sensitive issue in Portugal. Fernando Media, the country’s finance minister recently confirmed that he wanted to start taxing cryptos working to define a legal framework to regulate the sale of cryptocurrencies like Bitcoin. Many countries have already built their model for taxing cryptocurrencies.
It will be a little over a year since the content of cryptocurrencies in terms of taxation was on the table. Put the matter aside after the various changes so it seems that the Portuguese government is back now with a genuine desire in the future to define a legal framework for taxation.
Meanwhile, Portugal remains a tax haven for cryptocurrencies. Many investors benefit greatly from it, especially for creating their start-ups. The only question is until? It is a safe bet that this country will align itself with its neighbors such as Spain or France. Even if in Germany for example owning Bitcoin after more than a year allows tax exemption.
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