According to reports, from March next year, Austria may tax Bitcoin and altcoins at the same percentage as mainstream equity and bond investments.
A recent Bloomberg report states that Austria is hoping to create equity between different types of assets and to impose a 27.5% capital gains tax on all assets, be they stocks, bonds or cryptocurrency investments. The Finance Ministry commented:
“We are taking a step in the direction of equal treatment, to reduce mistrust and prejudice toward new technologies.”
If passed, the new law will apply from March 2022 and Austria could be the first EU country to have such a tax system.
Only when tokens are sold will authorities enforce new tax rules on digital assets like Bitcoin and Ethereum. If investors buy the tokens before the scheduled date next spring, the 27.5% fee does not have to be paid.
Those who sell one cryptocurrency to buy another are also exempt from paying taxes. Last but not least, under the proposed policy, investors can receive compensation for potential losses when selling their tokens.
Other Countries on Their Way to Tax Crypto
Austria isn’t the only country considering a tax on cryptocurrency transactions as the list spans almost every continent.
Indonesia, for example, saw a significant increase in crypto users and a large influx of new traders this year. In the wake of these developments, district authorities began to consider taxing people who use Bitcoin and all altcoins in transactions.
South Korea is next. However, the situation in the East Asian countries is a bit chaotic. The government originally promised to impose a 20% tax on the proceeds of digital asset transactions from early 2022. Finance Minister Hong Nanji even called this move “inevitable”. Recently, however, the ruling South Korean Democratic Party announced that it would pass a bill that could delay the taxation of cryptocurrency investors. Officials claim that the move lacks adequate infrastructure and needs to be postponed.