Reports revealed that the Portuguese authorities have submitted a new crypto tax policy to the country’s Parliament. The new policy reportedly targets gains made from short-term crypto holdings.
Portugal Regulators Proposed A Tax Policy For Short-term Holders
Portugal, which was once a no-crypto tax country is now racing with different tax policies. According to reports, the tax authorities of the country plan to expand the current crypto tax policies.
Furthermore, the report revealed that the country’s policymakers plan to start taxing short-term crypto holders. To that effect, they had reportedly submitted a proposal entailing their plans to the country’s Parliament waiting for approval.
According to the bill, the government wants to start taxing profits from crypto holdings that are less than a year. They plan to include the tax structure in Portugal’s 2023 budget.
In addition, the bill stated that short-term crypto holders have obligations to remit 28% of their profits as tax. Portugal currently charges taxes on gains investors made from business or professional crypto dealings. The country does not tax anyone for holding crypto assets for any period.
Portugal Emulated Other European Countries Crypto Tax Laws
However, if the new proposal was approved, it would cause significant changes in the structure of the country’s crypto tax policies. Furthermore, any profit on crypto holdings that is not up to a year would be taxable. On the contrary, however, holdings that linger more than a year are free of taxes according to the reports.
Additionally, the bill requires a 10% tax on all free crypto assets transfers, and a 4% tax on all commissions brokers made. In addition, cryptocurrency miners, and issuers might also be included in the tax policies soon.
A Portuguese tax executive, Antonio Mendes, stated that they structured the tax proposal according to the crypto tax policies used across Europe. He added that no tax would be on earnings made from holdings that are over a year.
Many Countries Continues To Pay Attention To Crypto Tax Laws
Currently, the new tax proposal is still before the Portugal Parliament awaiting approval to become a law. Before the proposal, Portugal’s Finance Ministry officials stated that the country would enact capital gains tax for digital assets.
Nonetheless, the Parliament of the country outrightly refuted the bill even though two political parties supported it. Meanwhile, many nations have been fixing their gazes on cryptocurrency tax policies. Recently, India enacted a 30% tax on crypto holdings, and a 1% TDS on all digital assets transactions.
Consequently, the cryptocurrency market in the country is currently in shambles as traders deserted it because of the strict policies. On the contrary, South Korean regulators have put a hold on their proposed 20% crypto tax until 2025.