Austrian authorities say they want to apply capital gains tax to Bitcoin and other digital currencies in order to make them more accessible for investors.
It would mean both cryptocurrencies and traditional bonds would be sitting on the same level, as far as investments are concerned, which would lead Bitcoin to be considered as an equity investment.
The move would create a fair relationship between different investments by imposing a single capital gains tax of 27.5%.
According to the official report, the main intention is to increase the population’s interest in new technologies. Tghe measures would be imposed on March 1 2022, and will only apply to cryptocurrencies purchased after February 28 2021 or ‘new assets’.
Previously acquired digital coins – ‘old assets’ – will not be subject to the new tax rules.
Austria’s Finance Minister Gernot Blümel remarked that “at the moment there is still an imbalance in terms of the regulation of cryptocurrencies compared to traditional stocks and bonds”.
He added 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.
“We are the first country in the EU to create a tax framework for cryptocurrencies. In the course of the tax reform, we will take a step towards equal treatment in order to reduce distrust and prejudice against the new technologies,” Blümel said.
“At the same time, we ensure more fairness for investors and uniform market conditions. This is an essential step in making this financial product more accessible. We are not only pioneers in Austria but also pioneers in Europe.”
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