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- As per the new draft policy, the Portuguese have to pay tax on any profits gained from trading cryptocurrency.
- 28% of the levy charges have to be paid on profits from digital assets.
Portugal’s legislation is trying to introduce a crypto taxation policy in its 2023 budget plan. The draft budget was waiting for approval from the government to help the nation shift towards the crypto world. Currently, the nation doesn’t have any specific type of levy charge on crypto gains from users.
With increasing interest in cryptocurrencies, the Portugal legislation decided to introduce new guidelines to pay tax on crypto gains which are held for less than one year. Policymakers are shifting towards digital currency as there is a continuous demand for cryptocurrency in the nation.
The European nation of Portugal intends to impose new regulations on a 28% tax on profits from crypto assets that are held by the users within one year. Until now, the European nation has not had any specific regulations on the profits from digital assets except on corporate platforms and professional business entities.
Aside from that, the government has decided to impose a 10% tax on the free trade of digital currencies. A 4% tax will be levied on middle agents who charge for crypto transactions. The proposed draft rules will also be applicable to other European nations who are still lacking in introducing levy charges on crypto assets, including Germany.
The policymakers estimate that the new policy will also support the miners, who are currently facing a huge crisis due to heat waves and the low availability of electricity in the nation.
At a press conference which was held in Lisbon, the Secretary of State for Tax Affairs stated that “It is a regime that fits into our tax system and also to what is being done in the rest of Europe.”
Not only Portugal, but many other countries like South Korea and India are moving towards implementing certain types of regimes on crypto investors.
Recently, South Korea seized $184 million worth of US dollars in digital assets due to non-payment of taxes by the investors. For about two years, the country collected $260 billion won due to unpaid taxes.
So the nation has taken the step of imposing a 20% tax on the country’s digital assets at the start of the year 2022. Later, the government took back the step due to a negative response from investors.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
