TLDR;
This YouTube live stream, hosted by AlexCrypto, features Mário Moura, a tax expert, to clarify tax obligations related to cryptocurrencies in Portugal. They discuss the Cryptobooks platform for managing crypto transactions, the tax implications of converting crypto to fiat, the 365-day rule for tax exemption, and the tax treatment of staking, airdrops, and trading futures. They also touch on the complexities of declaring crypto assets, the criteria for being considered a professional trader, and the impact of international exchanges and regulations on tax compliance.
- Cryptobooks platform helps manage and report crypto transactions for tax purposes.
- Converting crypto to fiat currency is the taxable event.
- The 365-day rule can exempt crypto gains from taxes under certain conditions.
Introduction to Crypto Taxes in Portugal [0:02]
AlexCrypto introduces the live stream's focus on clarifying tax obligations related to cryptocurrencies, emphasizing the importance of understanding these obligations for proper income declaration. He promotes Cryptobooks, a platform designed to simplify the aggregation and reporting of crypto transactions from various exchanges and wallets, offering features like transaction optimization and tax report generation. A 30% discount is offered via a link in the description. Mário Moura is introduced as the tax expert for the session.
Mário Moura's Website and Crypto Tax Basics [2:40]
Alex highlights Mário Moura's website (mmc.pt), which offers information and services related to tax compliance, including a blog with articles on crypto-asset taxation. Mário expresses pride in the blog's content, noting its high ranking in Google searches and the conversion of live discussions into articles. The conversation begins with the fundamental question of when individuals must pay taxes on cryptocurrencies, with Mário clarifying that taxes are triggered upon converting crypto assets into fiat currency.
The 365-Day Rule and Swap Technicalities [7:03]
The discussion focuses on the 365-day rule for tax exemption and its application to crypto assets, including recent clarifications from tax authorities. Mário explains a "swap técnico" (technical swap), where crypto is converted to a stablecoin before fiat, and confirms that this does not reset the 365-day count, citing a specific binding information request (PIV) number 28.969. He clarifies that converting from one stablecoin to another (e.g., SDC to euroc) also does not restart the count, but buying a new crypto asset does.
Crypto Swaps, Wallet Declarations, and Taxation of Staking and Airdrops [12:48]
The conversation addresses whether swapping one crypto for another or for stablecoins generates taxable events in Portugal, confirming that it does not, as long as the assets remain within the crypto sphere. Mário clarifies that there's no need to declare crypto wallets or these types of swaps; declaration is only required upon conversion to fiat. The discussion moves to the taxation of staking, landing, and airdrops, anticipating future binding information requests for further clarity. Mário suggests these are likely to be categorized as other income from crypto assets, taxed upon conversion to fiat with a zero cost basis, potentially eligible for the 365-day rule.
Trading Futures and Collateralized Loans [14:21]
Mário discusses a recent unfavorable ruling that classifies trading futures as operations with derivatives, not crypto assets, complicating tax calculations for traders. He contrasts this with the previous understanding of treating such income as other income from crypto assets. The legality and declaration of using crypto as collateral for loans is discussed, with Mário opining that it's legal as long as the original asset remains in the owner's custody and is not transferred to the lending platform. Liquidation events, however, trigger a taxable event.
Tokenized Assets and Professional Trader Criteria [24:09]
The discussion covers the tax implications of tokenized assets, noting the uncertainty and potential classification as derivatives, especially for tokenized stocks. The criteria for being considered a professional trader are explored, highlighting the lack of objective thresholds and the subjective assessment of regular, professional activity. Mário suggests that relying solely on trading for income strengthens the case for professional trader status, requiring activity registration.
Category B Income and Mining [31:08]
The conversation addresses Category B income for validators and miners, explaining how to issue invoices to an "indifferent consumer" and confirming the absence of VAT on mining operations. Mário clarifies that mining income is not exempt under the 365-day rule, though potential appreciation after mining might be. The possibility of opening a store accepting only Bitcoin is discussed, distinguishing between keeping the Bitcoin and using a service to convert it to fiat immediately.
Taxation of Companies Dealing with Crypto [35:52]
The taxation of companies dealing with cryptocurrencies is addressed, noting that companies operate under different rules (IRC) than individuals (IRS), with no 365-day rule. Companies must calculate gains on each transaction, and income is recognized when earned, regardless of payment receipt. The discussion shifts to the annexes in the IRS form for declaring crypto assets: G for taxable gains, G1 for exempt gains, and J for income earned outside Portugal.
Platform Compliance and International Reporting [39:28]
The conversation covers the conditions platforms must meet for users to benefit from the 365-day rule, emphasizing the importance of the exchange's location and its agreements with Portugal. The discussion touches on the increasing trend of platforms migrating to EU sites for MICA compliance. Mário highlights the new obligation for European exchanges to report transactions, mirroring existing requirements in Portugal, and warns of potential information sharing between countries, citing examples of tax authorities identifying undeclared income from abroad.
Taxation for Web3 Professionals and Stablecoin Strategies [46:42]
The discussion addresses the correct tax treatment for Web3 professionals receiving compensation in crypto, advising that it should be treated as Category B income (service provision) rather than crypto assets. The legality of applying the 365-day rule to tokens received as compensation is questioned. The conversation revisits the strategy of converting crypto to stablecoins, reaffirming that the 365-day count does not reset upon conversion to stablecoins, based on recent binding information.
FIFO Rule and Declaring Losses [50:19]
The application of the FIFO (First-In, First-Out) rule when using crypto cards is discussed, emphasizing that the first crypto assets purchased are considered the first ones sold when using the card. The option to declare losses is addressed, noting that it requires opting for "englobamento" (aggregation), which affects taxation for subsequent years.
Corporate Crypto Accounts and Community Engagement [54:29]
The requirements for companies to buy crypto are outlined, emphasizing the need for a corporate account with exchanges. Mário clarifies that technically, gains from crypto are considered capital income but are declared as capital gains with zero cost at the moment of converting to fiat. Mário shares his contact information and promotes his presence in AlexCrypto's private community.
Mining, Electrodometics and 365 Days Rule [57:00]
Mário clarifies that mining income falls under Category B, requiring activity registration, and discusses the calculation of profit under simplified and organized accounting regimes. He explains that the 365-day rule applies to capital gains, not business income.
Final Questions and Summary [1:05:18]
Final questions from the chat are addressed, including whether transferring crypto from a cold wallet to an exchange resets the 365-day count (it does not). Alex asks about experiences with the new crypto tax laws, with Mário noting a smoother declaration process in the recent campaign. Alex summarizes that converting to stablecoins and waiting a year is a safe strategy, though the recent binding information provides more flexibility. Mário emphasizes the importance of complying with laws and regulations.
