Italian parliament approves 26 % tax on cryptocurrency profits in the household law 2023 - taxes
Italian parliament approves 26 % tax on cryptocurrency profits in the household law 2023 - taxes
The Italian parliament has introduced a capital tax of 26 % of cryptocurrency profits as part of the 2023 budget law, which was passed on December 29. The document also offers incentives for taxpayers to declare their cryptocurrency stocks and suggests 3.5 % for non -declared cryptocurrencies before December 31, 2021, and a fine of 0.5 % for each year.
The Italian parliament passes a capital gains tax for crypto
The Italian parliament gave the green light on December 29 as part of his budget law for a new tax on cryptocurrency. Senatorers approved the document presented on December 24, which an aliquot of 26 % for cryptocurrency gains over 2,000 euros (approx. $ 2,060) approved during a tax period.
The capital gains tax for crypto was since 1.12. The approved document contains a number of incentives for taxpayers to declare their cryptocurrency stocks, to propose an amnesty for profits achieved, pay a "replacement tax" of 3.5 % and add a fine of 0.5 % for each year.
Another incentive contained in the budgetary law will enable taxpayers to delete their capital gains tax of 14 % of the price of the cryptocurrency held on January 1, 2023, which would be significantly below the price that was paid for when buying the cryptocurrency.
Likewise, cryptocurrency losses of more than 2000 euros are considered a tax deduction in a tax period and can be transferred to the next tax periods.
Italy's new cryptocurrency tax law leaves space for interpretations
The law provides clarity about most key circumstances under which cryptocurrencies are taxed. However, the law mentions that "the exchange between crypto-assets with the same characteristics and functions is not a taxable event". This means that the users have to receive instructions for submitting their tax returns, since these assets were not defined with the same characteristics and functions in the legal text.
Italy, which lacks a comprehensive cryptocurrency regulation, follows in Portugal's footsteps. The European Land included Budget law for 2023, a decision that could endanger the country's status as a refuge for cryptocurrency companies and owners.
This proposal presented in October also provides taxes on the free transfer of cryptocurrency and the commissions that are collected by cryptocurrency exchanges and other cryptocopodations to facilitate cryptocurrency transactions.
What do you think of the capital gains tax of 26 %approved by the Italian parliament for 2023? Tell us in the comment area below.
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