
Portugal Tax Authority: Bitcoin Trading and Payments Are Tax-Free - Anon84
https://cointelegraph.com/news/portugal-tax-authority-bitcoin-trading-and-payments-are-tax-free/
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jorge-d
So I read the 2016 ruling [1], and it basically stipulates that:

    
    
      Assim, as cripto-moeda podem gerar diferentes tipos de rendimentos tributáveis:
      1) Por ganhos obtidos com compra e venda de unidades monetárias virtuais / troca ao câmbio do momento de cripto-moeda por moeda real (qualquer que ela seja)
      2) Por obtenção de comissões pela prestação de serviços relacionados com a obtenção ou curso normal da cripto-moeda.
      3) Por ganhos derivados de vendas de produtos ou serviços em cripto-moeda.
    

which would basically translate to:

    
    
      Thus, the cryptocurrencies would generate 3 different type of taxable revenues:
      - the gains from selling/buying Cryptos when changing them into real fiat currency (whatever the currency)
      - for any commission one might earn for services related to the cryptos
      - for any gain that one might get from selling products or services in cryptos
    

Basically this ruling is just about platforms not being entitled to charge VAT
to their customers.

[1]
[https://info.portaldasfinancas.gov.pt/pt/informacao_fiscal/i...](https://info.portaldasfinancas.gov.pt/pt/informacao_fiscal/informacoes_vinculativas/rendimento/cirs/Documents/PIV_09541.pdf)

~~~
icebraining
I think that paragraph is just saying what they're going to analyse, not the
conclusion. They proceed to analyse each hypothesis, and conclude crypto-coins
don't fit in any, therefore not being taxable under personal IRS.

That's at least how I (and Jornal de Negócios, the newspaper) read it.

~~~
inlined
It seems this is following the collectibles argument. Bitcoin “isn’t” a
currency but buying or selling the collectible of Bitcoin is a taxable
transaction.

~~~
icebraining
That's not my reading, nor of the tax lawyer that read it:
[https://www.jornaldenegocios.pt/opiniao/detalhe/as-mais-
vali...](https://www.jornaldenegocios.pt/opiniao/detalhe/as-mais-valias-das-
criptomoedas) (in Portuguese).

He writes: "Thus, in the understanding advocated by the [IRS], the profits
obtained from the sale of cryptocurrencies are not taxable in the IRS under
the Portuguese tax system, unless it is a taxpayer's professional or business
activity, in which case it will be taxed as income falling within IRS category
B."

~~~
jorge-d
Well, you're right in the case of non-recurring crypto trading.

Now, in the paragraph B, it is said:

Now the exercise of the activity is determined by its recurrence and the goal
of the activity to generate profit. If there is a business or professional
activity then the person would have to pay the IRS and would be required to
comply with the reporting obligations, whenever you perform a sell or provide
a service.

To me, doing some crypto-trading would easily fall in this definition and the
IRS might come later saying "hey, you did multiple transactions over the
course of X months, this looks like a professional activity"

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gamblor956
Hi guys, according to the Portuguese journal, this ruling specifically holds
that (a) crypto trades are not subject to VAT, like other commodities trades
in Portugal.

Will edit or follow-up once I can read the ruling itself on a PC.

EDIT: I was able to read the rulings and deleted (b) and the statement about
mining not being income. Portugal's tax authority has explicitly said it is
not yet ready to analyze the taxability of crypto mining. The rulings
themselves are much less expansive the Portuguese journal cited by the linked
crypto blog.

~~~
benj111
"so mining is not taxable income in Portugal"

The income is taxable, even as capital gains, though? I assume when the coins
are sold.

~~~
icebraining
It seems it's not, at least for individuals; from what I can tell, the tax law
that taxes gains is not generic, that is, it explicitly lists the types of
property (shares, financial instruments, etc) that it applies to, and
cryptocurrency doesn't fit any, therefore the gains are not taxable.

(Native speaker, but not a bitcoin trader or tax professional)

~~~
ska
Is it not taxable, or just taxable at regular income tax rates (not capital
gains)? The latter seems likely.

~~~
icebraining
Not taxable at all, I believe; see my other post:
[https://news.ycombinator.com/item?id=20830538](https://news.ycombinator.com/item?id=20830538)

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DangerousPie
I can see why bitcoin trading would be VAT-free but did they really say that
there would be no _income /capital gains tax_ on profits from it? That would
be very surprising.

~~~
roryrjb
I got excited thinking it would be no tax on profits, but no, just mentions
VAT.

~~~
icebraining
This ruling is about VAT, but there was a previous one regarding income tax.

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gruez
Sounds like the reasonable thing to do. You don't get charged VAT when buying
stocks/forex, for instance. It looks like the ruling only applies to VAT
though, you still probably have to pay capital gains.

~~~
penagwin
Thanks for explaining this. Coming from the US, seeing the headline I was
thinking - welp either I miss understood what they meant or a ton of (rich)
crypto investors are about to move to Portugal.

This makes far more sense.

~~~
lawn
That would be an interesting thought experiment. What if a country did say
there's no tax on cryptocurrencies, would it be a net benefit for them or not?

On the plus side a lot of (rich) crypto investors would presumably help the
country because they would have a lot of money to spend. On the negative side
they might lose out on valuable tax income.

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m3kw9
Tax free lol that’s to reel you in.

