Italy appears to be on track to tighten digital asset regulations and expand taxation on crypto trading from next year. An overview of the same, a recent report from Bloomberg revealed,
“A provision in the country’s proposed 2023 budget plans to extend a 26% levy on capital gains to digital assets for gains over 2,000 euros ($2,062.3).
Digital coins and tokens have until now been treated as foreign currency by the Italian tax authorities. Therefore, it was subjected to a relatively lower tax.
Investors encouraged to disclose HODLings
The report outlined,
“Prime Minister Giorgia Meloni’s government bill also gives taxpayers the option to declare the value of assets from 1 January 2023 and pay 14% tax.“
In particular, the said option aims to encourage Italians to declare their HODLings of digital assets and file their tax returns. In fact, the proposed law, which may be subject to parliamentary amendments, also includes disclosure obligations and extends stamp duty to cryptos.
Read more: Portugal is proposing a 28% crypto tax in its 2023 budget
It is worth recalling that another European country, Portugal, announced similar plans to tax crypto profits. In October this year, the Portuguese government proposed a 28% tax on capital gains for cryptos held for less than a year. It even proposed a 4% tax on free transfers of cryptos in cases of inheritance, as well as stamp duty on commissions charged by intermediaries involved in the crypto sector.
In addition, Germany also took a similar stance on crypto taxation. It released new guidelines in Q2 2022 with clear income tax rules for virtual assets and crypto. According to the main conclusion, individuals who sold Bitcoin, Ethereum and other currencies more than a year ago were not liable for taxes on the sale if they made a profit.