Italian parliament introduces 26% capital tax Did. Cryptocurrency profits will increase as part of the 2023 Budget Act, which was approved on December 29th. The document also provides incentives for taxpayers to declare their cryptocurrency holdings, proposing a 3.5% aliquot for undeclared cryptocurrency held before December 31, 2021, and a 0.5% aliquot. Suggest a percentage. % fine per year.
Italian parliament passes capital gains tax on cryptocurrencies
The Italian parliament will pass a new tax on cryptocurrencies on December 29 as part of the 2023 Budget Law. approved. Senator { .
A capital gains tax on cryptocurrencies has been proposed since December 1, when the draft budget bill was submitted. The approved document includes a set of incentives for taxpayers to declare their holdings in cryptocurrencies, proposing a pardon on profits achieved, paying an “alternative tax” of 3.5% and paying 0.5% annually. adding a % fine.
Another incentive included in the Budget Act allows the taxpayer to cancel the capital gains tax on his 14% of the value of the cryptocurrency held on her January 1, 2023 . Purchased.
Similarly, virtual currency losses over €2000 during a tax period count as tax credits and can be carried forward to the next tax period.
Italy’s new virtual currency tax law is open to interpretation
The law provides clarity on most of the key situations in which virtual currencies are taxed. However, the law states that “exchanges between crypto assets that have the same nature and function are not taxable.” This means that these assets with the same characteristics and functions are not defined in the body of law and users should be guided for presenting their tax returns.
Italy, which lacks comprehensive cryptocurrency regulation, is following in Portugal’s footsteps. The European country has included a similar capital gains tax at a rate of 28% as part of the 2023 Budget Act. This is a decision that could jeopardize the country’s status as a haven for cryptocurrency companies and owners.
The proposal, announced in October, would also consider free virtual currency transfers and a tax on fees charged by virtual currency exchanges and other virtual currency operations to facilitate virtual currency trading. It has been.
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