Portugal: Consumer Protection Association says Bitcoin investors must pay taxes
The argument of the DECO argues that if Bitcoin is an asset, it should be taxable like any other similar asset. The tax would be 28% per transaction. Although in the European country there are no regulations for cryptocurrencies, the Ministry of Finance considers that digital currencies are taxable if they are obtained through professional activity
At a time when the cryptocurrency ecosystem suffers a significant correction due to the fact that Bitcoin fell below the USD $ 10,000 mark yesterday, the Portuguese Association for Consumer Protection DECO wants the government to impose contributions, that is to say, serious taxes, to cryptocurrency investors. According to the local publication Sábado, the organization sent a proposal to tax the profits of cryptocurrencies to the Ministry of Finance and the European commissioner in charge of consumer protection.
According to the publication, DECO affirms that a standard tax of 28% should be applied to the profits of the cryptocurrency operation, since the same tax percentage is applied to the profits obtained from the shares and other financial instruments. DECO revealed the movement in an edition of its magazine Proteste Investe, aimed at traditional investors.
According to the organization, it is unfair that traditional investors must deliver almost a third of their profits, while cryptocurrency investors do not have to pay anything. In its text it reads:
What is the argument for not taxing this type of financial operation? A small saver who lends his savings to the state (through savings certificates) or who invests in a company's stock and creates wealth and employment sees that the government holds almost a third of its profits (income and capital gains usually they are taxed at 28%). How can we justify this fiscal inequality? It's hard".
André Gouveia, a DECO economist, reiterated that any other type of investment is subject to a 28% tax and cryptocurrencies are still unfairly exempt.
Despite the lack of regulations, the Ministry of Finance has made it clear that Bitcoin does not have a legal framework in the country, and yet claims that the profits of cryptocurrencies are taxable if obtained as a result of a professional activity.
According to the average Saturday, the government currently maintains the potential Bitcoin regulations that are in the hands of the European Union (EU). Apparently, the government allows financial regulators, such as the country's central bank, to handle any problem related to cryptocurrencies, together with the EU.
When asked, PS Parliamentary Group vice president, party spokesman João Galamba, said "Bitcoin should be regulated at European and G20 level" and added that it would be counterproductive for the country to create "isolated initiatives".
Saturday also spoke with the parties of left and right. Left parties said they do not plan to do anything about cryptocurrencies, while right-wing parties said they were "closely following" the issue, and one of the parties added that it is assessing the need for potential regulations.
Portuguese bank Santander Totta recently started blocking transactions related to Bitcoin, a move that caused some of its clients to change banks. As reported, Portugal's finance minister and Eurogroup president, Mário Centeno, has said he is confident that regulators are monitoring the impact of Bitcoin.