Community Short Facts - April 2022

New taxation of cryptocurrencies

Bitcoin, Ethereum, Ripple: cryptocurrencies have now found a firm place in the financial world and have long since shed their status as an exotic form of investment. However, they have not yet really fitted into the corset of Austrian tax law, but this is about to change: Because with the Eco-Social Tax Reform Act 2022 Part I (ÖkoStRefG 2022 Part I), the federal government has created long-awaited clear rules for the taxation of cryptocurrencies. As cryptocurrencies did not previously constitute capital assets within the meaning of the Income Tax Act, their profits were subject to a progressive tax rate of up to 55% when sold.

However, this only applied if the sale took place within one year of acquisition, i.e. within the one-year speculation period. After this period, gains were always tax-free. The new tax law now brings two significant changes: firstly, gains from the sale of cryptocurrencies are now taxable even after one year and secondly, all income from cryptocurrencies is now subject to the special tax rate of 27.5 percent.