And “Bloomberg” news agency indicated that Portugal does not currently impose taxes on cryptocurrency profits unless they are the result of economic activities or professional work. But it seems that this system will change.
According to the draft new year’s budget submitted to Parliament, there is a provision to tax the increase in the value of cryptocurrency balances held less than one year at 28 percent of these profits, while profits from crypto assets that are held for more than 365 years will be exempted. days.
The draft budget, which still needs parliamentary approval to become a law, also includes the consideration of the proceeds from the issuance of new digital currencies and digital currency mining activities, as taxable income. The government also intends to levy a 10 percent tax on free cryptocurrency transfers and 4 percent on currencies obtained by intermediaries from cryptocurrency transactions.
It is noteworthy that cryptocurrency transactions were “not subject to tax”, under Portuguese law, because they are not considered foreign currencies or financial assets, according to a statement issued by the Portuguese Finance Department in 2016. Therefore, individuals should not pay value-added tax or tax on profits. Capitalism is when they buy or sell assets, and only professional activities that are paid for with crypto assets are subject to tax.
The Portuguese government had been targeting a budget deficit of 1.9 percent of gross domestic product this year after a deficit of 2.8 percent in 2021, but it ran a surplus in the first seven months of the year. The Central Bank of Portugal expects the economy to grow by 6.3 percent this year.
The Portuguese economy also recorded a growth in the second quarter of this year by 7.1 percent on an annual basis, after a growth rate of 11.8 percent during the first quarter, and preliminary estimates indicated a growth of the economy during the second quarter by 6.9 percent.
Inflation in Portugal was 9 percent year-on-year in August, or more than double the 4 percent forecast in the 2022 budget.
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