Italy will charge capital gain tax on cryptocurrency trading profits above 2000 Euros.
Italian Prime Minister Giorgia Meloni’s new budget introduced 26% capital gain tax on cryptocurrencies. The tax will be levied on crypto profits of about 2000 euros in a single financial year.
The citizens of Italy holding cryptocurrencies will have the option to declare the value of their holdings as of Jan 1, 2023 and pay 14% tax. This move is done to remove any confusion on crypto taxation before 2023.
As per the report published by Cointelegraph, 2.3% of the Italian population (1.3 million) owns crypto assets. The majority of the population belongs to the 28-38 age group with approximately 57% male and 43% female as of July 2022.
The move came months after Portugal’s Finance Minister announced the introduction of 28% crypto tax in the parliament. The proposed bill will tax crypto profits held for less than a year.
Taxing cryptocurrencies is welcomed by the crypto community. It helps set the foundation for regulations in the industry. Earlier India introduced crypto tax, charging 30% capital gain tax on the crypto profits and 1% TDS (Tax Deduction at Source) on every crypto transaction.
Despite the bear market, 2023 will bring more clarity in terms of setting up the crypto regulations on a global scale. Forums like G-20 will likely lead the way in regulating virtual digital assets.
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Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.