Austria Plans to Tax Cryptocurrencies Like Stocks, Vows Equal Treatment
Vienna’s government claims it wants to equalize investments in crypto assets like bitcoin. It has stated that it is considering applying the same 27.5% tax to crypto assets as it uses to tax capital gains in traditional stocks and bonds. Austria plans to implement the measure as part a larger tax overhaul that will be implemented next year.
According to Bloomberg, the news comes as more countries around the globe are looking for ways to tax the incomes derived from the growing crypto asset market. As Bitcoin.com News reported recently, the total value of the crypto market exceeded $3 trillion. This is expected to continue.
The Federal Ministry of Finance of Austria stated in a statement that there was still an imbalance in regulation of cryptocurrency compared to traditional bonds and stocks. The Federal Ministry of Finance also stated that the new tax structure will include bitcoin and other cryptocurrencies and provide fair conditions for investors from different asset classes. Officials further elaborated:
We will make progress towards equality in tax reform to lessen the prejudice and distrust surrounding new technologies.
According to the department, this regulatory step is essential in making crypto-related financial products easier to access. Gernot Blumel, Austria’s Finance Minister, was quoted as saying that ‘We aren’t only pioneers here in Austria, but also in Europe.
The document states that the tax liability will be in effect on March 1, 2022. It will not apply to cryptocurrencies bought after February 28, 2021 or to ‘new assets’. The new tax rules will not apply to digital coins that have been previously acquired.
Austrian taxpayers should refer the general tax regulations to report crypto gains as income from speculation transactions if they were sold within one year of purchase.