According to information related to the budget that was made public on December 1, Italy plans to boost the regulatory burden placed on digital currencies in the year 2023 by broadening the scope of its tax laws to include the trade of cryptocurrencies.
Included in its 2023 budget are plans to impose a 26% levy on profits greater than 2,000 euros ($2,062) made on cryptocurrency trading, according to Bloomberg. Due to the fact that digital currencies have traditionally been regarded as “foreign money,” they have traditionally been subject to lower tax rates.
Taxpayers will be given the option to declare the value of their digital asset holdings as of January 1 and pay a tax rate of 14% if the bill that is currently being proposed is passed and signed into law. It is hoped that this will encourage Italians to include a declaration of their digital assets on their income tax returns.
According to the data provided by Tripe A, 2.3% of the population of Italy is crypto asset owners, which is equivalent to approximately 1.3 million people. By July 2022, it was anticipated that roughly 57% of crypto users were male, while 43% were female, with most of its users belonging to the 28–38 age bracket.
Italy looks to be following in Portugal’s footsteps. In October, Portugal Formerly renowned as a cryptocurrency tax, proposed a 28% tax on capital gains from cryptocurrencies held for less than a year.
In its 2023 state budget, the Portuguese government addressed the taxation of cryptocurrencies, which had been previously left undisturbed by tax officials since digital assets were not recognised as legal cash. In order to address issues relating to the taxation and categorization of cryptocurrencies, Portugal plans to develop a tax structure that is both “wide and appropriate” in scope. The proposed tax measure includes enterprises involving cryptocurrency mining and trading as well as capital gains.
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