The Left Block electoral program included a proposal fees on the sale of cryptocurrencies a day after the ECO portal reported that the government of Portugal awaits amendments to the income tax for individuals in parliament, reports the portuguese press.

One of the main focuses of the party election program for the changes of January 30, 2022 is the creation of a tax on the provision of digital services, changing the Income Tax (IRS) rules so that gains with cryptocurrencies start to pay fees, as happens, for example, with the traditional stock market.

The government understands that it cannot tax as cryptocurrencies without parliament changing the IRS code, which leaves the tax authority hands tied for not being able to levy taxes on the counterparty with cryptocurrencies, placing Portugal on the list of countries as a crypto tax haven. Neighbors like France and Spain already regulate these operations.

Exemption from tax on cryptocurrencies is difficult to justify in a country where fees on the sale of financial assets reach 28%. According to the Portuguese Tax Authority, the sale of cryptocurrencies is only taxable when, “due to its customary nature, it constitutes a professional or business activity of contributor”.

Still according to the Portuguese publication, in March 2021, the RFF law firm advised investors to still keep records of cryptocurrency transactions to avoid problems with finance.

“It is advisable for taxpayers to keep a record capable of justifying the origin of their knowledge, especially if they incur expenses, potentially seen by the tax legislator as manifestations of wealth”, the company wrote in an informative document on the subject”.

Countries discuss cryptocurrency religion

In the United States, the president of the Brazilian Securities and Exchange Commission (SEC), Gary Gensler, referred to several references to crypto market regulations during his talk on a securities forum.

On a speech emphasizing the need for oversight, Gensler said the SEC’s approach has been consistent. For him, this means that the cryptocurrency market regulations need to be applied consistently, “regardless of the entity, technology or business model”.

“For example, we hear terms like ‘decentralized finance (DeFi)’, ‘virtual currency’ or ‘p2p loan,’ Gensler said. “Make no mistake – regardless of the label or intended mission, we will be looking at realities, valuing a product or arrangement to determine if it complies with securities laws.”

Disclaimer

All information contained on our website is published in good faith and for general information purposes only. Any action that the reader takes based on the information contained on our website is at his own risk and expense.