Italian Prime Minister Giorgia Meloni’s 2023 expansionary budget, which was completed in a rush before the end of the year, gets parliamentary approval with a 26% crypto tax.
Starting from 2023 crypto traders in Italy are subjected to pay 26% capital gains tax on gains exceeding 2000 euros.
The new bill also sets a substitute income tax for investors declaring crypto profits. Under the substitute tax investors are liable to pay 14% of the assets held as of Jan 1, 2023 instead of the cost at the time of purchase.
The 387-page budget legitimizes crypto assets by defining them as “a digital representation of value or rights, which can be transferred and stored electronically, using the technology of distributed ledger or similar technology.”
It also reliefs crypto traders as losses from crypto investments can be deducted from profits and be carried forward.
Though investors may require additional guidance to figure out what counts as a taxable event as the new bill outlines that the exchange between crypto assets having same characteristics and functions, doesn’t constitute a fiscal case.
