The Austrian Finance Ministry wants to boost cryptocurrencies by taxing them like stocks and bond investments.
Austrians will pay a 27.5% capital gains tax on crypto tokens from March 2022.
According to Bloomberg, the Austrian Ministry of Finance said the new tax would level the playing field for cryptocurrencies and traditional assets:
“We are taking a step in the direction of equal treatment, to reduce mistrust and prejudice toward new technologies. Our tax framework would be the first of its kind in the European Union and will improve fairness among investors by streamlining conditions between different classes of assets.”
The new tax will be introduced in March 2022. The tax will only apply to the sales of the coins. Buying and holding of tokens will not be taxed. In addition, some compensation is expected if digital assets are sold at a loss.
Austria will become the first country in Europe to impose a tax on cryptocurrencies similar to the tax on income from trading stocks. As the capitalization of the cryptocurrency market is approaching $3 trillion, other countries are thoughtfully examining introducing taxes on income from trading digital assets.