Portuguese Parliament Rejects Crypto Tax Proposal During Budget Debate – Tax Bitcoin News

Two proposals to tax crypto assets have failed to gain support from Portuguese lawmakers who are discussing the state budget. The bids came from a handful of left-wing parties, while the ruling majority party has yet to come up with its own draft to regulate the matter.

Portuguese Lawmakers Motion to Stop Taxing Crypto Gains

Members of Portugal’s legislature, the Assembly of the Republic, rejected two separate proposals to tax profits from crypto investments. They came from the left-wing parties Bloco de Esquerda (Left Bloc) and Livre and were rejected by a majority of the ruling Socialist Party.

An attempt was made to adopt rules for taxing capital gains from crypto assets during ongoing discussions on the country’s 2022 budget, Eco reported. Portuguese news portals have been following the parliamentary debate.

The development follows a recent statement by Finance Minister Fernando Medina, who disclose The government is working on a legal framework to allow taxation of crypto-related income. He stated that it is unacceptable that any capital gains have tax loopholes, suggesting that Portugal is preparing to change its tax policy regarding cryptocurrencies.

Portugal through maintenance zero– Percentage tax rate on private crypto investment profits. If these gains are not derived from professional activities, no income tax is payable.

Livre’s proposal envisages a tax on crypto capital gains over a threshold of 5,000 euros ($5,400). The Ecosocialist Party insists that the executive power in Lisbon should take the necessary steps to introduce an obligation to declare crypto assets for tax purposes.

Portugal’s favorable crypto tax regime and relatively affordable cost of living have made the country a hub for technological innovation, attracting digital nomads and bitcoin enthusiasts from around the world, including Ukrainian Recently worked in the field of encryption.

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What is your explanation for Portugal’s decision to change its crypto tax policy? Let us know in the comments section below.

Lubomir Tasev

Lubomir Tassev, a journalist from tech-savvy Eastern Europe, likes Hitchens’ famous quote: “Being a writer is who I am, not what I do.” Beyond crypto, blockchain and fintech, international politics and The economy is two other sources of inspiration.

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