According to the proposed budget for the upcoming fiscal year, the new administration in Italy intends to levy a 26% tax on capital gains from cryptocurrency trading.
Italians will soon be required to declare their digital assets and pay 14% tax on their holdings, according to the center-right coalition in power.
The Italian government wants to profit from cryptocurrencies.
The rules governing the disclosure of and taxation of digital assets appear to be expanding and becoming more stringent in Rome.
The adjustment is anticipated to occur with Italy’s 2023 budget, which is anticipated to focus on gains from cryptocurrency wealth and trade.
A proposal in the budget by the right-wing administration of Prime Minister Giorgia Meloni extends to digital currency assets a 26% tax on capital gains above a threshold of 2,000 euros (about $2,100).
The ruling coalition also gives taxpayers the choice to declare the value of their digital assets as of Jan. 1, 2023 and be taxed at a 14% rate. The ruling coalition was elected in late September.
Digital currencies and tokens are treated as foreign currency in Italy under the current tax laws, which results in a lower tax rate.
According to the report, which uses Triple A data, 1. 3 million Italians (2.3% of the nation’s population) are crypto asset owners.