• The Italian parliament has approved a 26% capital gains tax on cryptocurrency gains in its 2023 budget.
• The tax will apply to all crypto capital gains made by individuals and businesses in Italy and take effect on Jan.1, 2023.
• Losses from bitcoin investments can be carried forward to subsequent tax years and offset against earnings.
The Italian government recently announced that they would be implementing a 26% capital gains tax on all cryptocurrency transactions as part of their 2023 budget. This tax will apply to all crypto capital gains made by individuals and businesses in Italy and will take effect on January 1, 2023.
The tax is intended to bring cryptocurrency gains in line with other investments such as stocks and real estate, and is expected to generate significant revenue for the government. The new legislation also imposes a 14% ’substitute income tax‘ on the worth of assets kept on Jan.1, 2023, as opposed to the cost at the time of acquisition.
In addition, the new regulations allow losses from bitcoin investments to be carried forward to subsequent tax years and offset against earnings. This means that if capital gains from cryptocurrency reach 2,000 Euros within the tax period, a 26% tax rate will be imposed on the profits.
The Italian government believes that this new tax system will help to increase transparency, as it provides incentives for individuals and businesses to document their cryptocurrency gains. This will help to ensure that the government is able to collect the revenues that it is entitled to, as well as helping to level the playing field between different types of investments.
It is hoped that the new tax system will not only help to bring in additional revenue for the government, but will also help to encourage the growth of the cryptocurrency market in Italy. This could lead to more investment in the sector and the potential for more innovative new projects to take off.
Overall, this is a positive move for the cryptocurrency sector in Italy and could be a sign of things to come for other countries in the region. As more governments look to gain a better understanding of the cryptocurrency market, it is likely that similar tax systems will start to be implemented in other countries as well.