Crypto and Stocks have always been very different in terms of their treatment by the government and the tax system. But this is going to change as Austria plans to tax crypto and stocks like equals. This means all the tax benefits that are applicable to owning stocks will be applied to crypto as well. This will further increase the investment in the space, as a lot of people still don’t due to complications that come with taxing crypto. This move also implies or showcases that the government treats crypto and stocks as equal, and so can the people.
Taxing crypto will change
Crypto will now be able to enjoy the benefits of capital gains just like stocks. This will give investors who are planning to hold long-term, a huge benefit. They can save a lot of taxes and easily book profits which was not the case before. In Vienna, the government is planning to levy the same 27.5% on crypto that they use for taxing stock and other traditional asset gains. This move will also make the tax system for crypto a lot more organized, and investors will understand better what they owe the government.
The entire crypto market is now worth over $3 trillion, which makes it a viable stream to extract taxes from. Other nations are still deciding on the guidelines they wound want to have while taxing crypto. There is also the necessity to make sure that investors are unable to hide profits from their investment to prevent paying taxes.
The idea behind this
While talking about the plans to treat crypto and stocks the same way, the officials said that they are doing this to reduce the unequal treatment and prejudice against new tech. Plus, there is still a disbalance between the kind of regulation of traditional stocks and crypto, which is something that needs to change. The officials also announced that the new laws will be active from March 2022 and will apply to digital assets acquired after Feb 28, 2021.
Do you think other countries will also consider the idea of treating crypto equally as Austria plans to tax crypto and stocks the same way? If yes, which might be the second country to do so? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.