5 ms·

So in other words there is no additional tax on bitcoin transactions for payments that are already taxed in other ways (eg. buying a product where the price alr

So in other words there is no additional tax on bitcoin transactions for payments that are already taxed in other ways (eg. buying a product where the price already includes VAT) but profits from bitcoin trading are still taxable? That would be a very misleading headline in that case.

gamblor956 7y ago
I have been able to read the ruling (https://translate.google.com/translate?sl=auto&tl=en&u=https%3A%2F%2Finfo.portaldasfinancas.gov.pt%2Fpt%2Finformacao_fiscal%2Finformacoes_vinculativas%2Frendimento%2Fcirs%2FDocuments%2FPIV_09541.pdf https://translate.google.com/translate?sl=auto&tl=en&u=https...). If that is translated accurately, cryptocurrency is not considered a currency, so it's not subject to regular income tax. It's not a capital asset, so it's not subject to capital gains. The gain is derived from selling the crypto units themselves, so they don't generate capital income (i.e., "passive" income in the US). Crypto trading is taxable as business income if the individual makes a business of trading crypto, meaning they regularly engage in crypto trades. However, if it's just incidental or occasional trading, then it's not taxable as personal income. They do not provide a bright line rule from when you cross over into crypto trading as a business, but I would say more than 3x a year and you should be talking to a tax lawyer (not an accountant--accountants are good for well-settled areas of tax/accounting, but for unsettled or fast-changing areas like this they're extremely bad at making defendable tax/accounting positions that survive tax authority review). The headline is for a blog post linking to a Portuguese business journal about a new ruling which is purely about whether crypto trading on crypto platforms is subject to VAT.
- jorge-d 7y ago
  Yes, as a Portuguese reader (but not a lawyer!) this is also how I understand it. Now the legislation is currently in a very grey area (notably on the business/occasional definition) and I'm guessing it will evolve in the coming years.

gamblor956 7y ago

I have been able to read the ruling (https://translate.google.com/translate?sl=auto&tl=en&u=https%3A%2F%2Finfo.portaldasfinancas.gov.pt%2Fpt%2Finformacao_fiscal%2Finformacoes_vinculativas%2Frendimento%2Fcirs%2FDocuments%2FPIV_09541.pdf https://translate.google.com/translate?sl=auto&tl=en&u=https...). If that is translated accurately, cryptocurrency is not considered a currency, so it's not subject to regular income tax. It's not a capital asset, so it's not subject to capital gains. The gain is derived from selling the crypto units themselves, so they don't generate capital income (i.e., "passive" income in the US). Crypto trading is taxable as business income if the individual makes a business of trading crypto, meaning they regularly engage in crypto trades. However, if it's just incidental or occasional trading, then it's not taxable as personal income. They do not provide a bright line rule from when you cross over into crypto trading as a business, but I would say more than 3x a year and you should be talking to a tax lawyer (not an accountant--accountants are good for well-settled areas of tax/accounting, but for unsettled or fast-changing areas like this they're extremely bad at making defendable tax/accounting positions that survive tax authority review). The headline is for a blog post linking to a Portuguese business journal about a new ruling which is purely about whether crypto trading on crypto platforms is subject to VAT.

jorge-d 7y ago
Yes, as a Portuguese reader (but not a lawyer!) this is also how I understand it. Now the legislation is currently in a very grey area (notably on the business/occasional definition) and I'm guessing it will evolve in the coming years.