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Portuguese Parliament Rejects Crypto Tax Proposals During Budget Debate

Portuguese Parliament Rejects Crypto Tax Proposals During Budget Debate – Two proposals to tax crypto assets were rejected by Portuguese Lawmakers who are now debating the state budget. Minority left-wing parties submitted bids, while the ruling majority has yet to submit its own draft to regulate the situation.

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Members of Portugal’s legislature, the Assembly of the Republic, have rejected two different measures to tax earnings from cryptocurrency investments. They were rejected by the majority of the ruling Socialist Party after coming from the leftist parties Bloco de Esquerda (Left Bloc) and Livre.

Also Read: IMF Chief Begs Investors Not to Shun All Crypto After the Collapse of LUNA

Attempts to enact laws for taxing capital gains from crypto assets were made during continuing deliberations on the country’s budget for 2022, according to Eco. The debate in parliament has being followed by the Portuguese news portal.

The development comes after a recent statement by Finance Minister Fernando Medina’s recent announcement that the government is working on a legal framework that would allow for the taxation of crypto-related income. He stated that tax loopholes for any capital gains are unacceptable, implying that Portugal is poised to amend its cryptocurrency tax policy.

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Portugal distinguished itself as a crypto-friendly destination by exempting profits from private crypto investments from taxation. These gains are not subject to income tax if they are not the result of professional activities.

Capital gains from cryptocurrency that exceed a €5,000 ($5,400) threshold will be taxed, according to Livre’s proposal. The eco-socialist party demanded that the executive authorities in Lisbon take the required steps to enact an obligation to report crypto assets for taxation purposes.

Also Read: No Tax Amnesty for Russian Crypto Miners as Lawmakers Withdraw Proposal

Portugal’s favorable crypto tax policy and low living costs have turned the country into a tech innovation hub, attracting digital nomads and bitcoin enthusiasts from all over the world, including Ukrainians who have recently entered the crypto space.

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