On December 29, the Italian Senate 2023 approved new legislation for a 26% tax on capital gains on trading crypto-assets over 2,000 euros.
According to the new legislation, crypto assets are defined as a digital representation of value or rights that may be exchanged and held electronically using distributed ledger technology or equivalent technology. Before this regulation, crypto assets were taxed less than they were since they were considered foreign currency.
According to Coindesk, the measure also allows taxpayers to register the value of their digital-asset holdings and pay a 14% tax to incentivise Italians to reveal their digital assets.
Italy’s parliament has backed Prime Minister @GiorgiaMeloni‘s 2023 budget, which introduces a 26% capital gains tax for crypto. @iamsandali reportshttps://t.co/hKtVIQReSL
— CoinDesk (@CoinDesk) December 30, 2022
In addition to lowering the retirement age and instituting tax amnesties to minimise penalties for late payments, the budget law also provides financial incentives for creating new jobs. It also includes tax cuts of 21 billion euros for firms and households to help them weather the energy crisis.
Although Giorgia Meloni, Italy’s first female prime minister, campaigned on a platform of dramatic tax cuts if elected in September, the Italian legislature overwhelmingly approved her proposal.
Italian citizens have been advised to lower their heating down by one degree, and leave them off for an extra hour a day in winter as part of government efforts to reduce gas consumption, as reported by local media.
The Italian legislation follows the Markets in Crypto Assets (MiCA) bill, establishing a uniform regulatory framework for cryptocurrencies across the European Union’s 27 member states.
