Austria equates cryptocurrencies with securities

Austria equates cryptocurrencies with securities

From March 2022, Austria may impose a 27.5% capital gains tax on transactions with digital assets. This corresponds to the rates for stocks and bonds, Bloomberg writes.

According to the agency, the government aims to create a level playing field for investors in different asset classes. It would be the first such move at the European Union level.

We will reduce distrust and prejudice toward new technologies, the Finance Ministry said in a statement.

Digital assets purchased before the tax went into effect will not be taxed when they are sold. A tax on speculative investments with a holding period of less than a year has previously been extended to cryptocurrencies.

Under the proposed rules, no tax liability would arise if one digital asset is converted into another. Investors would be able to count on compensation calculated on the basis of potential losses when selling them.

Recall that the Ministry of Finance of Slovenia has submitted for public discussion an initiative to introduce a tax on transactions with cryptocurrencies. It is assumed that the rate will be 10% for conversions and payments in digital assets.

Jack Evans

About the author

I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

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