Italy Introduces a 26% Tax on Cryptocurrency Income
Italy's government has proposed a new law that aims to extend a 26% levy on capital gains to digital assets, following Portugal's lead in taxing short-term gains on digital assets at 28%. The proposed law, part of the Italian government's 2023 budget, targets profits exceeding 2,000 euros ($2,062.3).
The legislation, yet to be implemented beyond January 1, 2023, also includes disclosure obligations for cryptocurrency transactions and extends the stamp duty to cryptocurrency transactions. The bill encourages Italians to utilise their digital potential in their tax returns, but it does not specify the specific digital assets that will be subject to the extended capital gains tax.
Currently, Italy's tax authority considers digital coins and tokens as foreign currency, leading to lower taxation on crypto trading. However, the proposed law may bring about changes in this regard. The bill, proposed by Prime Minister Georgia Meloni's government, offers taxpayers the option to declare the property's value at a 14% tax rate until January 1, 2023.
Bloomberg has reported on the proposed law, but there are no search results specifically identifying the legislator who proposed the bill. The data for the number of crypto asset owners in Italy, provided by Triple-A, suggests that approximately 1.3 million people, or 2.3% of the Italian population, own crypto assets. This is slightly higher than France's percentage of crypto asset owners, which stands at just under 3.3%.
It's worth noting that the article does not provide details on any potential changes in the taxation of short-term gains on digital assets in Italy. Additionally, the article does not specify the proposed capital gains tax rate for digital assets in Italy beyond the 26% mentioned earlier. The Italian government's proposed law may be subject to amendments in parliament.
The proposed law includes various provisions aimed at regulating the use of digital assets in Italy. As the situation develops, it will be interesting to see how these regulations unfold and how they may impact the Italian crypto market.
