Italy Proposes a 26% Tax on Capital Gains from Digital Assets: 2023 Budget
- Gains from trading over €2,000, or $2,062, will be subject to a 26% tax in Italy.
- Also, the Italian government has directed taxpayers to openly convey the value of their virtual assets.
- The government recently said it was willing to work with crypto trading firms.
- As Italy works on clearer and more robust cryptocurrency regulations, Portugal isn’t far behind.
As part of the measures towards instilling stricter crypto regulations, authorities in Italy have resolved to inflict a 26% tax on every capital gain incurred in crypto trading.
The expansion of the taxation on crypto trading was made known through the country’s budget plan for the coming year. The huge tax tag, however, will only be payable if the gains from trading total more than €2,000, or $2,062.
Meanwhile, the Italian government led by Prime Minister Giorgia Meloni has also directed taxpayers to convey the value of their virtual assets openly. According to the government, the declaration of these assets is effective from January 1, 2023.
However, to encourage disclosure of these assets among Italians, the government announced it would only levy a 14% tax on them. Italy also aims to integrate stamp duty into cryptocurrencies.
Italy Seeking to Become a Hub for Cryptocurrencies
The Italian authorities plan to make the country a hub for cryptocurrencies. However, they want to do so in line with clear and robust regulations capable of protecting investors from the volatility of the sphere.
In recent times, the government announced its readiness to work with crypto trading firms seeking to expand their offerings in Italy. It has already issued regulatory approval for Binance to establish its base in the country. Similarly, earlier Nexo and Gemini have also received registration approval from the nation’s regulator.
While Italy develops clearer, more comprehensive, and stronger regulations for cryptocurrencies, other European countries, like Portugal, are not far behind.
In October, Portuguese authorities announced their resolve to introduce a 28% tax on all profits from cryptocurrencies. Further, Portugal’s government seeks to commence a 10% taxation on free cryptocurrencies, like airdrops, and another 4% on crypto broker commissions.
On the Flipside
- Despite the approval of many exchanges in Italy, questions remain about the vetting procedure. Crypto entities only need to submit ten pieces of information to register as virtual asset service providers and go through a few other steps.
- Despite the recent FTX collapse the registration process is relatively straightforward, which might raise some eyebrows.
Why You Should Care
Currently, only 2.26% of Italy’s residents own digital assets. As a result, the recent proposal might serve as a barrier to more players joining the crypto space.
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Read more: https://dailycoin.com/italy-proposes-a-26-tax-on-capital-gains-from-digital-assets-2023-budget/
Text source: DailyCoin.com
