On December 29, 2022, just days before the end of the year, the Italian Senate approved the 2023 budget, which included an increase in taxation for crypto investors. Italy now imposes a 26% tax on capital gains on crypto-asset trading over 2,000 euros (approximately $2,13 at time of publication).
The passed law defines crypto assets as digital representations of value or rights that can be electronically transferred and stored using distributed ledger technology or similar technologies. Previously, cryptoassets were considered foreign currencies in the country and were subject to lower taxes.
The bill will also allow taxpayers to declare the value of their digital assets and pay a 14 percent tax starting Jan. 1, an incentive designed to encourage Italians to declare their digital assets.
Other changes introduced by the Budget Law include a tax amnesty to reduce the penalties for tax arrears, financial incentives for job creation and a lower retirement age. It also includes 21 billion euros ($22.4 billion) in tax breaks for businesses and households battling the energy crisis.
Italy Working Through Reforms and Changes
Giorgia Meloni, the first woman to serve as the prime minister of Italy, had broad support for her bill in parliament when she was elected in September, despite promising big tax cuts.
Measures taken by the Italian government to reduce gas use across the country include leaving buildings without central heating for more than 15 days, asking people to turn the heating down by 1 degree and turning it on for an extra every day during the holidays Turn off hour, local media reported. Winter.
Italian legislation follows the enactment of the Market in Crypto Assets (MICA) Act on October 10, creating a unified cryptocurrency regulatory framework for the 27 EU member states. MICA is expected to come into effect in 2024.