Austria to impose Capital Gains Tax on Crypto currency

Next big thing on the global taxation front now is with regards to the  Crypto Currency Transactions. Next 2 years , every country will have its own mode of its taxation.

The latest update is by Austria

as under:

 1. 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.

 2. The reform provides for the integration of cryptocurrencies into the existing taxation system for income from capital assets.

 3. Austria intends to impose the measure as part of a wider tax overhaul to be carried out next year.

 4. The tax liability is to come into force on 1 March 2022 and apply to cryptocurrencies purchased after 28 February 2021.

 5. 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.

 6. 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.

 Probably,  this legislation in Austria may help provide  more clarity on taxability of crypto currency in India.

Time to wait and watch till 1st Feb 2021 when the FM Smt. Nirmala Sitharaman would be presenting her 4th successive Budget document.