Portuguese Parliament Rejects Two Crypto Bills

Portuguese Parliament Rejects Two Crypto Bills
  • Crypto Bills proposed by two left wings got rejected in Budget 2022.
  • Capital gains on other financial investments in Portugal are 28%.

On May 25th, the two left-wing parties Bloco de Esquerda and Livre submitted bills to establish taxation on the crypto assets during Portugal State Budget 2022. The bill got rejected as it lost in voting, according to a report by Sapo.

Portugal is known to be the tax haven for crypto assets, as the country hasn’t collected tax for activities carried out using cryptocurrency since 2018.Β 

But a few days prior, Fernando Medina the finance minister of the nation stated that capital gains from crypto will be subjected to taxation. The current tax on capital gains for other financial investments is 28%. 

Medina stated:

β€œMany countries already have systems, many countries are building their models in relation to this subject and we will build our own”

But the counter statement made on the announcement was, that the country functions slowly in the implementation of any legislation, and the tax implementation will take at least 2+ years.

The tax-free environment invented many startups for the nation, if the tax implementation comes into play the status of those small-scale businesses will remain in a questionable state.

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