Italy Passes 26% Crypto Tax Bill on Earnings Above €2000

  • Cryptocurrency dealers in the nation will feel the effects of the ruling.
  • On Thursday the parliament passed the new amendment.

Giorgia Meloni, the prime minister of Italy, has pushed through a bill that would tax the sale of digital assets. Italy’s planned budget for 2023 includes a 26% tax on cryptocurrency earnings above €2000. Cryptocurrency dealers in the nation will feel the effects of the ruling. And taxpayers who report crypto-related income will benefit from the law’s incentives.

On Thursday the parliament passed the amendment, making the change part of Meloni’s expansionary budget for 2023. Businesses and people affected by the energy crisis would be eligible for tax rebates of €21 billion ($22.3 billion) under the proposed scheme.

Despite the levy on crypto hurting people generating a profit from digital assets in the country. The new legislative reforms represent a huge step forward for the country’s crypto status. Using distributed ledger or comparable technologies, the 387-page budget defines crypto assets as “a digital representation of value or rights, which can be transferred and stored electronically, using the technology of distributed ledger or similar technology.”

 Losses May Be Subtracted From Earnings

Moreover, to be more precise, the 26% tax on crypto profits only applies to transactions above 2,000 EUR in a given tax period. As a result, the government is dangling a carrot in front of crypto traders. In the hopes that they’ll come clean. In its place, the measure establishes a “substitute income tax” on investors equal to 14% of the value of their holdings as of January 1, 2023, rather than the purchase price.

It has also been stated that under the new guidelines for reporting cryptocurrency investments, losses may be subtracted from earnings. Nonetheless, investors still favor direction regarding taxable eligibility. Conclusively, the document states that some crypto assets don’t qualify as a “fiscal case.”

Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.