Portugal Intends To Levy A 28% Tax On Cryptocurrency Profits

An official report released by the Portuguese government on Monday claims that the country has put forth a new cryptocurrency tax legislation that would go into force as part of its 2023 budgetary allocations. 28% Capital Gains Tax On Cryptocurrency Profits The Portuguese government will levy a 28% capital gains tax on cryptocurrency profits achieved within a year, according to a brief portion of the almost 450-page macroeconomic plan and fiscal policy report. Gains achieved after owning cryptocurrency assets for a year will not be subject to this tax. According to the plan, revenue from crypto mining and issuing would also be taxed. In May last year, Finance Minister Fernando Medina informed the legislature about the commencement of taxation on cryptocurrency. Plans Of Charging 4% Tax Additionally, the Portuguese government plans to charge a 4% tax and, if necessary, stamp duties on any free cryptocurrency transactions. The idea aims to provide a precise framework for cryptocurrency taxes and treat the industry equally with other businesses. The average capital gains tax in the nation is 28%. Parliament’s Stance On Crypto Tax In May of this year, the country’s finance minister declared that the government would start taxing cryptocurrencies, stating that the government would work on the legal framework but declining to provide a timeframe. According to Livre’s plan, profits exceeding €5,000 would be subject to tax. Mariana Mo...