The Italian Senate approved the budget legislation for 2023, including a new tax rate for crypto trading
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Just before the year’s end, Italy’s Senate approved the country’s budget for 2023, which included an increase in taxation for crypto investors.
Starting this year, crypto traders will pay a 26% tax on capital gains over 2,000 euros (about $2,13 at current rates). As of Jan. 1, taxpayers will also have the option to declare the value of their digital-asset holdings and pay a 14% “substitute income tax” on the current value of the assets held, rather than the cost at the time of purchase.
Furthermore, investors may now deduct losses related to crypto investments from their profits and carry them forward.
The updated legislation defines crypto assets as “a digital representation of value or rights that can be transferred and stored electronically, using distributed ledger technology or similar technology.” Previously, they were treated as foreign currencies, subject to lower taxes.
Besides the new crypto-related rules, the Italian budget for 2023 features $22.3 billion in tax breaks to assist businesses and households amid Europe’s energy crisis. Moreover, there are tax amnesties to reduce penalties on missed tax payments, fiscal incentives for job creation and a reduction in the retirement age.
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