Italian Parliament Approves 26% Tax for Cryptocurrency Gains in 2023 Budget Law – Taxes Bitcoin News
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The Italian parliament has introduced a 26 percent capital tax on cryptocurrency earnings as part of the 2023 budget law passed on December 29. The document also offers incentives for taxpayers to declare their cryptocurrency holdings, and proposes a 3.5 percent aliquot for undeclared cryptocurrencies. held before 31/12/2021, and a 0.5% penalty for each additional year.
Italian parliament approves crypto capital gains tax
On December 29, the Italian parliament introduced a new cryptocurrency tax as part of the 2023 budget law. Senators approved a document introduced on December 24 that approved a 26% aliquot on over 2,000 euros (about $2,060) during the tax season.
A crypto capital gains tax had been proposed since December 1st, when the draft budget law was presented. The approved document includes a series of incentives for taxpayers to declare their cryptocurrency holdings, proposing an amnesty for profits made, paying a 3.5 percent “replacement tax” and adding a 0.5 percent fine every year.
Another incentive included in the budget law allows taxpayers to withdraw their capital gains tax of 14% on the price of cryptocurrency held on January 1, 2023, which would be significantly lower than the price paid at the time of purchase of the cryptocurrency.
In the same way, cryptocurrency losses of more than 2,000 euros in a tax period are counted as tax deductions and can be carried over to the following tax periods.
Italy’s new cryptocurrency tax law leaves room for interpretation
The law is clear about most of the key circumstances in which cryptocurrencies are taxed. However, the law states that “the exchange of crypto-assets with the same characteristics and functions is not a taxable transaction”. This means that users must be guided to submit their tax return, as these funds, which have the same characteristics and functions, are not defined by law.
Italy, which lacks comprehensive cryptocurrency regulation, is following in Portugal’s footsteps. The European country included a similar 28 percent capital gains tax as part of its 2023 budget bill, potentially jeopardizing the country’s status as a safe haven for cryptocurrency companies and holders.
This proposal, which was announced in October, also looks at the fees charged by crypto-activities related to the free transfer of cryptocurrencies and the facilitation of cryptocurrency exchanges and other cryptocurrency transactions.
What do you think about the 26 percent capital gains tax approved by the Italian Parliament for 2023? Let us know in the comments section below.
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