The Italian Senate approved the new tax rate for crypto trading as part of the budget legislation for 2023.
The new Measures
Days before the end of the year, on December 29, 2022, the Italian Senate (1) approved the budget for 2023, which included an increase in taxation for cryptocurrency investors: a 26% capital gains tax on transactions involving crypto assets worth more than 2,000 euros (roughly $2,13 at the time of publication). Crypto assets are “a digital representation of value or rights that may be exchanged and maintained electronically, utilizing distributed ledger technology or comparable technologies,” according to the law that has been adopted. Before this, the nation considered cryptocurrencies as foreign currency with lower taxes.
The plan also stipulates that taxpayers would have the option to register the value of their digital asset holdings as of Jan. 1 and pay a 14% tax. These provisions are meant to encourage Italians to reveal their holdings. Their electronic resources tax amnesties to lower penalties for late tax payments, financial incentives for job creation, and a lowering of the retirement age are some of the additional changes made by the budget bill. Tax incentives of 21 billion euros ($22.4 billion) are also included for people and businesses struggling with the energy crisis.
Italy’s relation with crypto
Despite having pledged significant tax savings when she was elected prime minister of Italy in September, Giorgia Meloni gained strong backing for her measure from the parliamentary body. Local media sources state that the Italian government has taken steps to minimize gas use nationwide, including over 15 days without central heating for buildings, and requests residents to dial down and switch off their heaters by one degree.
The Daily increase of one hour throughout the winter. The Markets in Crypto Assets (MiCA) bill (2), which established a uniform regulatory framework for cryptocurrencies in the 27 member nations of the European Union, was approved on October 10; Italy’s legislation came after that date. In 2024, MiCA is anticipated to go into force.
