In the month of September, the Portuguese tax authority (PTA) has officially announced that Bitcoin and other cryptocurrency will not be subject to taxation within the country. An announcement that aroused a certain amazement, generating considerable confusion. The real intention of the regulators, in fact, was to provide a significant incentive to fans of digital coins who intend to convert Bitcoin and Altcoin in fiat currency. A move that could also increase the money supply circulating in Portugal, with significant advantages from a fiscal and economic point of view.
Citizens do not pay taxes on digital assets
Portuguese citizens do not have to pay taxes on capital gains or VAT when buying or selling cryptocurrencies. This is according to local media the true message contained in the PTA communication. In particular, the tax authority would have fixed a specific point, on the basis of which a cryptocurrency exchange with real currency must be equated with an exercise of VAT-exempt on demand services. As a consequence of this approach, no income tax should be paid by individuals who receive cryptocurrency payments.
Companies must pay tax on capital gains
If trading and receiving cryptocurrency payments are not taxable events, companies will instead have to pay capital gains tax (attested between 28% and 35%) and any other income tax associated with employee payments in the event that businesses and employees agree on wage payments in digital assets. Precisely the novelty of this legislative change makes it difficult at the moment to try to understand the ways in which companies will register these payments in their balance sheets.
The outlook for cryptocurrencies in Portugal
The news in question aroused considerable surprise and gave rise to a strong discussion from the parts of Lisbon. All this despite a general panorama that is still in Portugal basically immune to fever for BTC and Altcoin which instead characterizes other countries near and far. Most Lusitanians do not know what cryptocurrencies are and do not show great interest in the phenomenon. It can be said that the sector is still taking its first steps, although it should be stressed that there are a number of innovative projects that have their epicenter in Portugal with the specific aim of promoting the digital economy and fintech. To take charge are companies like Utrust e AppCoins, which do not hide the intention to popularize the use and adoption of cryptocurrencies within national borders.
Utrust focuses its work on online payments by proposing systems that allow crypto-users to convert their cryptocurrency into fiat when purchasing products online and, finally, in the store. AppCoins, in turn, aims to dominate the app business by leveraging a decentralized online store reserved for those for smartphones.
It is precisely their work that aims at greater transparency and decentralization of payments and, ultimately, at to break the monopoly hitherto exercised by traditional business models. If the Portuguese recognized their convenience in this process, the road to virtual currencies would be cleared.