Portuguese Parliament Rejects Proposals to Tax cryptos
- Cryptos exempted from capital gains tax in Portugal
- Proposal to tax cryptos tabled by two left-wing parties
- Ruling Socialist Party has not submitted any tax Bill as yet
The Bills presented by the two parties, which have little representation in the Portuguese Congress, sought to tax crypto profits in excess of €5,000 ($5,340.45).
The country, since 2018, has exempted cryptocurrencies from taxes, while it levies a 28% capital tax on other financial investments.
Ruling Socialist Party has not submitted any tax Bill as yet
While the ruling Socialist Party, holding the majority of the legislative assembly seats has not submitted any tax bill of its own so far, Portugal’s Finance minister Fernando Medina had earlier this month announced that crypto assets in the country soon would be subject to capital gains taxes.
Many countries already have systems, and many countries are building their models in relation to this subject and we will build our own.Portugal Finance minister Fernando Medina
Crypto taxation complex: Deputy Minister
Portugal’s deputy minister for finance and tax affairs Antonio Mendonça Mendes had said Portugal may consider other crypto-related taxes too much longer and that cryptocurrencies are a much more complex reality than taxation in terms of capital gains.
He had also suggested that crypto in Portugal could soon be subject to a value-added tax (VAT), stamp duties (IS), or even property taxes.
Several countries have sought to treat crypto profits as capital gains. Australia’s tax authority on May 17 issued a cautionary reminder to consumers who have failed to disclose taxable earnings made on the sale of cryptocurrencies and NFTs.