Portugal Parliament Rejects Bitcoin Tax Proposal
The plan to impose a tax on Bitcoin and other cryptocurrencies was shot down by the Portuguese parliament today. According to the online daily ECO’s live blog, the left-leaning parties Bloco de Esquerda and Livre advocated taxing digital assets during a budget session held on Wednesday evening, but the notion was ultimately rejected. As part of the request, the government was urged to consider taxing cryptocurrency gains that were more than €5,000 ($5,340.45).
Since 2018, the earnings from the individual sale of cryptocurrencies have been excluded from taxation in Portugal, which has been known for a long time as a bitcoin tax haven. Additionally, in the European country, the buying and selling of digital assets do not count as revenue from an investment. Because of this, Lisbon is a desirable location for cryptocurrency startups and events, despite the fact that companies that take cryptocurrencies are required to pay income tax on the money generated by doing so.
But it seems like that won’t be the case for much longer. Earlier this month, Fernando Medina, the nation’s Minister of Finance, made the announcement that profits on crypto assets held in the country would soon be liable to taxes on capital gains.
And quickly, the government of Portugal could impose a value-added tax (VAT), stamp duties, or property taxes on cryptoassets. This comes after Antonio Mendonca Mendes, the country’s deputy minister for finance and tax status, stated during the same parliamentary term that taxing cryptocurrency was a “complex situation,” and that capital gains alone may not be sufficient.