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Italy To Impose 26% Capital Gains Tax On Crypto Profits

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Italy To Impose 26% Capital Gains Tax On Crypto Profits

Italy intends to impose stricter regulations on digital currencies in 2023 by extending its tax laws to cover cryptocurrency trading, according to budget documents made public on December 1,

iexclusivenews reports that according to Bloomberg, the government has plans to impose a 26% tax on cryptocurrency trading profits exceeding 2,000 euros ($2,062) per transaction.

As “foreign currency,” digital currencies have historically been subject to lower tax rates.

What You Should Know 

Taxpayers will have the choice to declare the value of their digital asset holdings as of January 1 and pay a 14% tax if the proposed law is passed.

Italians are encouraged to report their digital assets on their tax returns by doing.

Tripe A data indicates that 1.3 million people, or 2.3% of the Italian population, are crypto asset owners.

According to estimates, 57% of cryptocurrency users in July 2022 were men and 43% were women, with the majority of users being between the ages of 28 and 38.

It appears that Italy is imitating Portugal. A 28% tax on capital gains from cryptocurrencies held for less than a year was proposed by Portugal in October.

Portugal was once regarded as a tax haven for cryptocurrencies.

The Portuguese government addressed the taxation of cryptocurrencies in its 2023 state budget.

Which had previously been ignored by tax authorities because digital assets were not recognized as legal tender.

A “broad and adequate” tax framework will be developed in Portugal to address the taxation and classification of cryptocurrencies.

Meanwhile, iexclusivenews Nigeria reports that the proposed tax bill includes provisions for capital gains as well as operations involving cryptocurrency trading and mining.