Portugal will bitcoin into tax form but not yet issued specific provision

Portugal will bitcoin into tax form but not yet issued specific provision

Like the rest of the world, the Portuguese media have been concerned about bitcoin, along with the increasingly popular encryption currency.

Early in April this year, the Portuguese media “JornaldeNeg CIOs” contacted the autonomous assembly (AT), similar to a part of the Ministry of Finance Bureau of financial institutions, in order to understand bitcoin is taxable.

The reporter by telephone to the staff asked a simple question: bitcoin is taxable? A member of the organization said that she did not know whether the citizens should declare bitcoin income, she is not qualified to answer this question, she promised to reply on the received within 24 hours after.

Later, reporters try again. This time, another staff admitted that he had asked this question, when he and his boss talked about this problem. Still no answer, no one knows whether it should be a digital currency into tax. In addition to record, staff told reporters don’t declare anything.

He said: “it is a legal blank, no rules, so I will not put any transactions into tax form.”

48 hours later, the first staff back. She said, get through the sale of bitcoin income tax is not a formal reply, answer with the Ministry of Finance in contradiction.

According to CCN reports, Portugal’s central bank, the Bank of Portugal has said in the past, bitcoin is not legal tender in the country, is not the central issue of the control mechanism. The Ministry of finance today reiterated that although bitcoin has no legal framework, but claimed bitcoin taxable income.

In the AT to JornaldeNeg CIOs said in a statement:

“The current Portuguese tax law not specifically consider this type of activity, we think this should be included in the income tax in accordance with the distribution of profits.”

In the two months after the launch of a statement written reply, given bitcoin income constitutes a “profit distribution”, the organization believes that as long as these “with the usual nature of a professional or business activities, bitcoin shall declare tax.

The following statement: “because these are not part of the Portuguese entity to pay income, so it is regarded as acquired abroad, must be mentioned in the tax form in portugal.”

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