Italian Parliament Introduces 25% Tax For Cryptocurrency Gains

Twitter icon  •  Published 1年前  •  Nikolas Sargeant

Cryptocurrency traders in Italy will be subject to a capital-gains tax of 26% beginning in the year 2023.

Following a new budget bill that received approval from the Italian parliament just last week, Prime Minister Giorgia Meloni has proposed a measure meaning taxpayers would have to report the value of digital assets as of January 1, 2023, and pay a tax rate of 14 percent. Cryptocurrency traders in Italy will be subject to a capital-gains tax of 26% beginning in the year 2023. 

The Bill

Since the beginning of December, since the government began drafting the bill, the idea of taxing crypto assets has been in conversation. The bill was officially approved on December 29th, designed to incentivize holders to declare their holdings. It proposed 3.5% aliquots for undeclared digital holdings held before December 31st, 2021, and a 0.5% fine for each additional year. 

Senators approved the bill on December 24th, approving 26% aliquot for cryptocurrency gains above 2,000 euros (approximately $2,060) during a tax period. While the details may change between now and 2023, the foundations for the bill are in place. Cryptocurrency losses exceeding 2000 euros in a tax period will count as tax deductions and be eligible to be carried out to the next tax year. 

October saw the release of this proposition, suggesting taxes on the gratis exchange of cryptocurrency, as well as the fees charged by crypto exchanges and other cryptocurrency activities for providing the service of trading in cryptocurrencies.

New Law Leaves Room For Interpretation

While the intention for crypto taxation is clear, things aren’t entirely clear, and it opens up the possibility of loopholes. The bill mentions that “the exchange between crypto assets having the same characteristics and functions does not constitute a taxable event.” As such, users will need help to present their tax statements, as crypto assets don’t have uniform functions and characteristics, legally speaking. 

Portugal was the first major crypto hub in Europe, with crypto holders flocking to the country to take advantage of its crypto laws. Italy is following suit, hoping to employ cryptocurrency regulation. Portugal included a similar capital gains tax of 28% as part of its budget law for 2023, sending those crypto fanatics that moved to the country looking for an alternative haven. 

Given that cryptocurrency has experienced a particularly turbulent year, it’s no surprise that governments are already looking to enforce regulatory standards for holders and traders. We expect to see many other nations following in the footsteps of Italy throughout 2023. 

Author

Nikolas Sargeant

Nik is a content and public relations specialist with an ever-growing interest in Crypto. He has been published on several leading Crypto and blockchain based news sites. He is currently based in Spain, but hails from the Pacific Northwest in the US.