The Italian parliament passed the 2023 budget law that includes a 26% capital gains tax on cryptocurrency earnings. December 29. The document provides incentives to taxpayers to report crypto holdings and offers a 3.5% tax rate on undeclared cryptocurrencies held before December 31, 2021 with an additional 0.5% penalty per year.
Italian Lawmakers Approve Capital Gains Tax for Crypto
The Italian legislature passed a new tax on cryptocurrency. December 29. This was part of the budget law for 2023. Senators The document was approved December 24. This approved a rate of 26% for cryptocurrency. cryptocurrency profits above 2,000 euros (roughly $2,060) in a tax year.
The Since 2005, a capital gains tax on cryptocurrencies has been proposed December 1. When the budget bill was initially introduced. The An approved document offers incentives to taxpayers to declare their cryptocurrency holdings. It proposes an amnesty for profits and pays a “substitute tax” of 3.5% plus a 0.5% penalty per year.
In addition, the budget law includes an incentive that allows taxpayers to write off capital gains tax at 14% on the price of cryptocurrency. January 1, 2023. This would be significantly lower that the price paid at the time the cryptocurrency was purchased.
In A similar manner, losses in cryptocurrency over 2,000 Euros in a tax period can be used as deductions that can be applied to the subsequent tax years.
Italy’s New Cryptocurrency Tax Law Leaves Room for Interpretation
The Most of the situations where cryptocurrencies will be subject to taxation are covered by law. HoweverAccording to the law, “the exchange between crypto assets that have the same characteristics and functions does not constitute a taxable event.” This This means users will need to be given guidance in filing their tax returns.
ItalyThe state, which does not have an extensive cryptocurrency regulation, follows in Portugal’s footsteps. The European A similar capital gains tax of 28% was included in the 2023 budget law. This decision could affect the country’s status of a safe haven for crypto- and company owners.
This The proposition was revealed in OctoberThis includes taxes on free transfers of cryptocurrency and fees charged by crypto exchanges and other crypto operations to facilitate cryptocurrency transactions.
What Think about the 26% capital gain tax ratified by The Italian Parliament for 2023? Please Leave a comment below.
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