WHAT DO THEY MEAN BY CRYPTO?
WHAT IS TAXED EXACTLY?
ANY NUANCES I SHOULD BE ON THE
|Crypto asset transactions with investors residing in blacklisted countries will generally be taxed regardless of whether they are short term or not, or whether they were exchanged for fiat money already or not. Also, tax losses transactions with investors residing in blacklisted countries will not be deductible against tax gains generated in the same year.
|Departing tax residents will suffer an exit tax (28% flat rate – with option for progressive taxation) on all crypto assets held at the time. The taxable gain will be the difference between the market value on the date of loss of resident status and the acquisition value.
Reset to the holding period counter
|It is still not clear whether crypto for crypto exchanges reset the 365 days of ownership exemption counter
(meaning if an investor holds for 7 months Bitcoin and the exchanges it for Ethereum for 7 more months and then exchanges it into fiat, should this be counted as a 14 month ownership or a 7 month ownership).
Until this topic is clarified by the Tax Authorities, investors should assume that the counter resets on every crypto to crypto exchange.
HOW IS CRYPTO REPORTED FOR TAX PURPOSES?
How can we help?
|We are a law firm based in Portugal, specialising in Portuguese tax and customs law.