Wednesday, October 5, 2022

Portuguese Parliament Rejects Crypto Tax Proposals

The parliament of Portugal has turned down two bills that propose tax imposition on cryptocurrency assets during a 2021 budget session. According to local news report, the imposed tax proposal on virtual assets was suggested by two parties named Livre and Bloco de Esquerda.

The parliament was asked to fix the imposed tax within the threshold of €5,000, approximately $5,345.75.

Portugal has a crypto ecosystem that is very friendly, being that the country has not taxed digital assets since 2018. Encouraging an influx of crypto investors and startups into the country. The Republic does not tax cryptocurrency assets because it believes that it does not qualify to be an asset, but only a means of exchange for goods and services.

The Minister of Finance of Portugal, Fernando Medina, however, recently noted that it is not a fair judgment that taxes are not imposed on cryptocurrency assets in the country. He added that while other countries already have a structured system of taxation on virtual assets the country is set to adopt its own unique legislation and crypto taxation. 

In a nutshell, while the time of commencement is not verified yet, the minister on behalf of the Ministry of Finance was hinting to the public that zero taxes on crypto assets will soon be a thing of the past.

A reasonable balance is yet to be achieved as it pertains to the previous stance of the Ministry of Finance on virtual assets taxing and the rejection of the imposed crypto tax bills by the Portuguese parliament.

However, it appears that the government maintains a zero-tax system on cryptocurrency assets for the moment, judging by the rejection of the proposed tax bills. The tides could change in no distant time.

In April, the apex bank of Portugal, Banco de Portugal issued a license to Bison bank, being the first it is issuing to a financial institution in the country to trade on digital assets.

This move aligns with the corporate objective of the country to see financial and blockchain technology thrive within its borders, irrespective of its taxation disposition

Israel Love
Israel Love is a passionate writer that enjoys educating and inspiring people through his writing. This passion fuels the desire to simplify the complexities in the blockchain ecosystem, by providing viable information about the crypto space in such a way that makes it easy for anyone to understand. Israel love also has interests in Human Resource Management as he is a trained expert in HR.

Related Articles

Stay Connected

0FansLike
0FollowersFollow
2,043FollowersFollow

Latest Articles

%d bloggers like this: