Austria to Apply Capital Gains Tax to Crypto currency:
- Austria has announced that it is considering applying the same 27.5% levy to crypto assets it currently uses to tax capital gains from traditional stocks and bonds.
- The reform provides for the integration of cryptocurrencies into the existing taxation system for income from capital assets.
- Austria intends to impose the measure as part of a wider tax overhaul to be carried out next year.
- The tax liability is to come into force on 1 March 2022 and apply to cryptocurrencies purchased after 28 February 2021.
- Cryptocurrencies acquired prior to 28 February 2021, will not be subject to the new taxation regime but instead treated as “old assets” under the existing tax rules for speculative transactions, meaning that tax is not payable because the one-year speculation period will have already expired.
- Austria’s Federal Ministry of Finance also insisted 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.
- Can this legislation in Austria help provide more clarity on taxability of crypto currency in India?
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