On December 29, 2022, the day before the end of the year, the Italian Senate approved the budget for 2023, which included a tax increase for crypto investors – a 26% tax on capital gains on trading crypto assets over 2,000 euros (about $2,000). 13 at the time of publication).
The approved law 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, crypto assets were treated as foreign currency in the country, with lower taxes.
As reported by Cointelegraph, the bill also specifies that taxpayers will have the option to declare the value of digital asset ownership from January 1 and pay a 14% tax, an incentive intended to encourage Italians to declare digital assets.
Other changes provided by the budget law include a tax amnesty to reduce penalties on missed tax payments, fiscal incentives to create jobs and lower the retirement age. It also includes 21 billion euros ($22.4 billion) in tax breaks for businesses and households suffering from the energy crisis.
Related: The MiCA bill contains clear warnings for crypto influencers
Giorgia Meloni, Italy’s first woman prime minister, received overwhelming support for the bill from the legislature, even as she promised dramatic tax cuts when elected in September.
According to local media reports, measures by the Italian government to reduce gas consumption throughout the country include more than 15 days without central heating for buildings, with the population being asked to turn off the heating by one degree and turn off one hour more per day during the winter.
The Italian law follows the approval of the Markets in Crypto Assets (MiCA) bill on October 10, creating a consistent regulatory framework for cryptocurrency in the 27 member states of the European Union. MiCA is expected to take effect in 2024.