Italy's parliament approves 26% tax on cryptocurrency gains

 

Italy's parliament approves 26% tax on cryptocurrency gains

1. Italy's parliament introduced a 26%
2. capital tax on cryptocurrency
3. gains as part of the 2023

which was approved on December 29.

• taxed at a 28% rate as The agreement also

•  offers tax payers incentives to participate in

• advertise their cryptocurrency holdings

He suggested dividing 3.5% of undeclared cryptocurrencies by December 31, 2021 and fining 0.5% for each additional year.

Italy's parliament passes capital gains tax for cryptocurrencies

Italy's parliament gave the green light to a new tax on cryptocurrencies on December 29, as part of its budget law of 2023.

Senators approved the document submitted on 24 December, which approved a 26% split for cryptocurrency gains of more than 2,000 euros during a tax period.

Ever since the draft budget law was unveiled on December 1st, the capital gains tax on cryptocurrency transactions has been suggested.

The approved document contains a series of incentives for

taxpayers to announce their holdings of cryptocurrencies

The proposal is to pardon the gains achieved, pay an "alternative tax" of 3.5%, and add 0.5% as a fine for each year.

Another incentive included in the Budget Act will allow taxpayers to eliminate capital gains tax of 14% of the cryptocurrency rate held on 1 January 2023

Which will be

much lower than the price paid when buying cryptocurrency.

In the same way

1. cryptocurrency losses in excess of Euro2,000 in
2. a tax period will be calculated as tax deductions
3. and can be executed in the following tax periods.

The new bitcoin tax legislation in Italy is ambiguous.

1. The law is clear about most of
2. the main circumstances in which
3. cryptocurrencies will be taxed.

However :

• the law states that

• "the exchange between encrypted assets with

• No event that shares the same characteristics and functions is taxable.

This means that users will have to receive guidance to provide their tax data, as these assets with the same characteristics and functions are not identified in the body of the law.

Italy :

which lacks comprehensive cryptocurrency regulation

is following in Portugal's footsteps.

The European State

1. introduced a similar capital gains
2. a 28% tax as a component of
3. its Budget Act 2023

It could jeopardize the country's status as a haven for

cryptocurrency companies and holders.

This proposal, unveiled in October

• is also considering taxing the free transfer of

• cryptocurrencies and commissions charged by cryptocurrency exchanges.

• and other encryptions to facilitate cryptocurrency transactions.

Countries may tax

cryptocurrency transactions as they would

any other form of income.

1. Specific details of the tax, such as the rate
2. may vary depending on the laws of
3. the respective country. It is important to note that

the tax treatment of cryptocurrency transactions may also

rely on the specific transactional circumstances

and the jurisdiction of the individual.

It is always a good idea to consult with a tax professional or refer to official government resources for information on how cryptocurrency transactions should be taxed in your specific situation.