After Portugal, another European country is set to toughen crypto regulations and further expand taxation on crypto trading. A provision in Italy’s 2023 budget plan seeks to levy a staggering 26% tax on capital gains derived from crypto trading.
However, this tax slab will be applicable if the crypto profits are larger than 2,000 euros ($2,062.3). Italy’s tax authorities have been seeing cryptocurrencies and tokens as foreign currencies.
Italy’s newly appointed government led by Prime Minister Giorgia Meloni has asked taxpayers to declare the value of their digital assets as of January 1, 2023, and pay a 14% tax. The goal is to encourage Italian citizens to disclose their digital asset holdings and their tax returns.
The proposed law, if amended in the parliament, will …