Valor Magazine #033
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Jöel Pereira (J.P.) is the CEO and founder of Viseeon NETWORK, an international network of accountants, based in Sénart, France, which distinguishes itself by a business model that allows its members extraordinary growth opportunities.
A qualified and certified public accountant, this entrepreneur created Viseeon in 2016, a company characterized by innovation in the digital transformation inherent to the practice of the profession and the merging of the practice of accounting in a unique communication and sharing model. In this interview, together with Vanessa Mendes (V.M.), tax expert, and Tânia Ramalho (T.R.), certified public accountant, he gives us his opinion on the recent regulation of the Portuguese cryptoasset market.
Viseeon Iberia was recently created as a result of a new direction in the company's management. What are the changes brought about by this decision and what impact can this expansion of your business area have on customers?
J.P.: Viseeon was created in France in 2016 and has grown very fast so far, which motivated us to expand the model to other geographical areas, starting with Portugal, where I have my roots. So in 2021, we launched Viseeon Portugal, with local partners. In mid-2022, I decided to end this partnership because it was not at all the "Viseeon" model that was deployed. Our model is based on
people, digital and knowledge. It is these three pillars, developed in a balanced way, that make us successful, both for the chartered accountants who join us and for the business leaders that our members support on a daily basis.
By providing our viseeoners with the best digital tools, a network of professionals and by increasing their knowledge, we enable them to respond in the best possible way to their clients' issues.
Recently, Portugal regulated investment in cryptoassets. What is your analysis of this new regulation? Is the taxation of these investments well legislated or are there areas that have not been covered, or are unclear, in its regulation?
T.R.: On the one hand, the introduction of this new regulation is positive, because it allows for the taxation of a type of income that was previously excluded, which caused distortions in the market.
However, the tax rules created do not cover all the loopholes and lead to doubts, which will only become apparent when we translate the schemes into their practical application. In a first analysis, and because of the established definition of
cryptoassets, we can see that the legislator has left out the taxation of realities such as NFTs. In addition, the VAT framework regarding mining activities has not been clarified, which may raise doubts about their taxation of mining activities.
With regard to the IRS, the legislator has increased the taxation of mining activities under the simplified regime, insofar as, until December 31, 2022, a coefficient of 0.35 has been applied to this activity, which will be increased to 0.95 as of January 1, 2023.
Domestic investors will be taxed on their crypto assets if they trade them in less than a year. If they hold them in a portfolio, they won't. Given the current state of the cryptoasset market, is this way of legislating appropriate?
T.R.: If you look at the cryptoasset market, they have recently lost value. For this reason, and even if investors sell them and it is possible to declare the corresponding losses, there will be no increase in tax revenue due to these legislative changes. In addition, the legislature has excluded the taxation of crypto assets held for more than 365 days. This could encourage investors to hold their assets longer, benefiting from the exclusion of taxation when they are disposed of.
Vanessa Mendes (tax expert) Tânia Ramalho (accountant)
NFTs are not covered by this legislation. Given that this is a crypto-activity that is going through a positive period in terms of investment, how do you evaluate this lack of legislation?
A.M.: We can see that the taxation regime for cryptoassets, especially in terms of income, implies an attempt to regulate an area that was previously excluded from taxation in Portugal. However, some operations, such as investments in NFTs, remain unregulated in terms of taxation. Whenever the legislator does not tax income-generating activities, it may direct investors, for purely fiscal and not economic reasons, to operations that result in much more favorable benefits. In this sense, there is an urgent need to address this issue in the near future.
How will this new legislation work in terms of the IRS for investors?
A.M.: As far as the IRS is concerned, we observe that the income generated from cryptoassets will be taxed as capital income (Class E) or capital gains (Class G). However, if the income generated results from the development of a business activity, as well as the issuance of cryptoactives, the income generated will be taxed as business income (Class E) or capital gains (Class G).
The income generated will be taxed as business income (Class B). When it is Category B income, it can be determined under the simplified or organized accounting regime. If the taxpayer is subject to the simplified system, the coefficient to be applied to cryptoactive transactions is 0.15 and 0.95 for income from mining operations. On the other hand, if the taxpayer falls under the organized accounting regime, the net result will be calculated according to the already known rules. For taxable persons (investors), their taxation with the IRS will depend on the type of income generated. If they obtain capital income, that is, income generated by the use of capital in a passive manner, they will be taxed according to the rules of category E, being exempt from withholding tax. The transactions of transfer of crypto assets are more frequent. In this case, the determination of this income will be done according to the FIFO method, considering the more recently acquired crypto assets. The withholding tax rate of 28% is applicable to this income and the taxpayer can opt for aggregation if it is more favorable. However, if the cryptoassets are held for more than 365 days, the earnings generated will not be taxed under the IRS.
In 2024, all taxpayers who sell cryptoassets will have to file an income tax return.
How has Viseeon Iberia prepared itself for this new legislation and to help your clients who come to you on this subject?
J.P.: We approach this issue from three main angles:
Knowledge - we promote internal training through our online university and the intervention of professionals;
Digital - we develop as soon as possible tools to secure the work and optimize the working time of our members;
Commercial - We are establishing international partnerships and will soon be launching Internet campaigns to become the reference for operations in France and Portugal.
