Austrian authorities have announced their intent to tax digital assets investments, just as they do stocks and bonds. It is anticipated that this will improve trust and accessibility to cryptocurrency.
Austria will apply capital gains tax to Bitcoin to make crypto more accessible
Claiming it aims for an equal treatment of investments in cryptocurrencies like bitcoin, the government in Vienna has announced it’s considering applying the same 27.5% levy to crypto assets it currently uses to tax capital gains from traditional stocks and bonds. Austria will impose this measure as part of an overall tax overhaul.
Тhe news comes as more and more nations around the world are exploring ways to tax incomes stemming from the expanding crypto asset market, а report by Bloomberg notes. Just recently, the total capitalization of the crypto economy exceeded $3 trillion in value, as Bitcoin.com News reported, and it’s likely to continue to grow.
In a statement issued on Tuesday, Austria’s Federal Ministry of Finance remarked that “at the moment there is still an imbalance in terms of the regulation of cryptocurrencies compared to traditional stocks and bonds.” It also insisted that the country’s new tax framework will be the first in the EU to encompass bitcoin and the like and ensure fair conditions for investors in different asset classes. The official explanations were:
We will make progress towards equality in tax reform to lessen the prejudice and distrust surrounding new technology.
This regulatory action is described by the department as an important step towards making crypto-related products easier to access. “We are not only pioneers in Austria, but also pioneers in Europe,” Austria’s Finance Minister Gernot Blümel has been quoted as saying.
According to the document, the tax liability is to come into force on March 1, 2022 and will only apply to cryptocurrencies purchased after Feb. 28, 2021, or “new assets.” Previously acquired digital coins, “old assets,” will not be subject to the new tax rules.
Austrian taxpayers are advised to refer to the tax regulations in this case and declare crypto gains as income from speculation transactions, if they were sold within one year of purchase.
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