Portugal: Bitcoin scores another point as Portugal declare all bitcoin transactions and mining tax-free

Portugal: Bitcoin scores another point as Portugal declare all bitcoin transactions and mining tax-free

It just keeps better and better for bitcoin around the world. The latest positive news comes from Europe, Portugal to be precise. It is believed that all transactions or payments conducted through cryptocurrencies or bitcoin would now be tax-free. This also includes the act of mining for these coins. This news comes from the reputable magazine Negocios where it states that the authorities had come out to say that the amount which was made from cryptocurrency would not be taxable. In other words, this would mean that all payments and earnings which come from cryptocurrencies are now considered to be tax exempted.

The report which was given by the magazine relates to the report which was given by the authorities who set the rules relating to tax. The request for an answer was first submitted by a mining bitcoin organization in Portugal.

The final message from the communication between both parties was that the entire mining and payments that are made in bitcoin would now be exempt from tax (VAT). While this may be news to you, for some, it is not.




In 2015, the European Court of Justice passed a judgment regarding the use and exchange of cryptocurrencies in Europe. In that judgment, the court held that the use and exchange of the coin would not fall under items which should be taxed. It also mentioned and affirmed that any exchange which takes place between the bitcoin currency and any fiat currency in the world would qualify as a service with the value gotten from the difference between the currencies constituting the remuneration and benefits.

How about Bitcoin and Tax in Germany?

While the laws in Germany are quite different from the ones that regulate the tax system in Portugal, they are not that different when it comes to the regulation of the bitcoin currency and the tax issues that come with it. However, it comes with a twist.

While the exchange of the bitcoin currency in Germany supports the tax-free status, it also provides for a holding period. What this means is that you would have to search and mine cryptocurrencies especially bitcoin for at least a year. It is only after that first year passes that you would be able to enjoy the tax-free status of the bitcoin in Germany. However, if you are making certain exchanges with the cryptocurrency before the one year elapses, you might be asked to pay some form of taxes. So all you have to do is to bear it for a year and you are pretty much in the clear.

Conclusion

Bitcoin evolution keeps spreading. From Australia to New Zealand to the most distant part of the earth. We are surely experiencing a historic change in the era of currencies and heading towards a future where the world would no longer be separated by fiat currencies. What a future we have in store for us and our future generation.
 

photo sources: ┬ęshutterstock.com by lunopark




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