- Summary:
- Trading of crytocurrencies and crypto payments will no longer be subjected to payment of value-added tax and income tax payments
Some time ago, we reported on this site that crypto payments in New Zealand would start to incur tax as the government there has classified Bitcoin as a form of property/asset. Apparently, it is a case of different strokes for different folks, because Portugal has decided against imposing taxes on crypto payments and transactions. This is according to an August 26 publication by a local Portuguese paper ‘Jornal de Negócios’, which indicates that no value-added tax would be imposed by the Portuguese Tax and Customs Authority on any transactions performed with digital currencies.
Apparently, there is an official court ruling which referenced a local company that is involved in crypto-mining, in which the ruling authority indicated that VAT could not be charged on this company or other crypto exchanges. The ruling also indicates that no income tax is payable by cryptocurrency users.
Apparently, a 2016 document released by the Portuguese tax authority had exempted cryptocurrencies or any income derived from the sale of cryptocurrencies from being subjected to income tax.
However, it must be noted that Portugal lies within the regulatory purview of agencies like the European Securities and Markets Authority (ESMA). As regulators all over the world seek to find some common ground over regulation and taxation of cryptocurrency income, it remains to be seen if a time will come when regulatory rulings will have to clash with local tax policies.
But for now, Portuguese crypto traders and dealer can enjoy the status quo.