The Socialist Party has yet to introduce legislation in response to Portuguese Finance Minister Fernando Medina's announcement that crypto income will be taxed in the near future.
On Wednesday, Assembleia da República, the Portuguese Parliament announced that it would reject two proposals to employ taxes on cryptocurrency.
Even though the demands imposed by left-wing parties Bloco de Esquerda and Livre were shut down, the Socialist Party (SP) stated that it would eventually tax crypto.
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The authorities have been requested to investigate taxing cryptocurrency revenues that overstep the €5,000 ($5,345.75) mark:
In 2022, the Government adopts the necessary initiatives to establish a tax declaratory obligation on cryptocurrency assets with a view to taxing their capital gains from the minimum threshold of 5,000 euros.
Moreover, founder of VMining and DuoVerse Derek Kaplan stated that any irrational employment of taxes on crypto would slow down its growth in the near future. He highlighted that the sector must have some space to breathe while also acknowledging the importance of the regulatory framework. The entrepreneur additionally commented:
Crypto industry is nascent and it shouldn’t be subject to the same rate applicable to capital gains on equivalent income as it will be unfair. This development reflects that crypto-friendly sentiment goes strong in Portugal.
Currently, Portugal does not have any capital gain taxes on crypto as digital assets are not considered part of income, according to the Portuguese Congress.
Fernando Madina, the Portuguese Minister of Finance, stated that Portugal will seek to develop its own crypto taxation policy. “Many countries already have systems, many countries are building their models in relation to this subject and we will build our own,” she added.
Portugal is the latest government in the world to fight taxes on digital assets, whereas several nations such as India have already established a tax regime.
On the contrary, earlier this year, Singapore’s Finance Minister Lawrence Wong stated that he would impose tax rules where traders will have to pay appropriate taxes for profiting through trading or selling their non-fungible tokens (NFTs).
On May 24, RFB also announced that Brazil’s traders in the cryptocurrency industry will have to pay taxes for transactions that include various crypto, including Ethereum (ETH) and Bitcoin (BTC).
