Italy: crypto tax approved on the 2023 budget law
-
Loading... - Sylvie Payet
- 07 Feb 2023
- 61 Views
- 0 Like
- 0 Comment
A few days ago, the Parliament in Italy approved the Budget Law 2023, in which among other things a new tax system for crypto has been introduced.
The issue is very technical and, as is often the case with these things in Italy, also decidedly complicated for the uninitiated.
After all, this new budget law focused mainly on tax measures, so it is not at all strange that they decided to clarify once and for all the specific tax regime that applies to cryptocurrencies, called “crypto-assets” in the text of the law.
The situation prior to the approval of the 2023 budget law
In fact, until now in Italy there was no specific law regulating the tax regime to be applied to cryptocurrencies. The Italian Tax Authority (Agenzia delle Entrate) has independently decided to apply the same regime valid for foreign currencies, but according to many, cryptocurrencies should not be equated with foreign currencies.
Actually, Bitcoin in two cases is considered foreign currency, since it is legal tender in El Salvador and Central African Republic, but this applies only to Bitcoin and not to any altcoin.
In addition, stablecoins based on fiat currencies are assimilated to foreign currencies almost in their entirety, with those based on the euro that could also be assimilated to domestic currency.
However, the previous situation was confusing, and above all uncertain, whereas now there are precise, explicit and dedicated rules that remove almost all doubt.
Indeed, they remain open to some interpretations concerning certain details, but overall they are clear.
The taxation introduced with the new 2023 bill
As might be expected, the taxation introduced only concerns capital gains.
That is, if any capital gains are obtained by selling cryptocurrencies, those gains from now on should be taxed at 26%.
The rules that applied previously, that is, those regarding the taxation of capital gains from selling foreign currency, also had a 26% rate, but with a difference.
Previously there was also a de facto exemption for all those who had never exceeded the holding threshold of €51,645.68 (equal to 100 million old lira) for more than seven consecutive working days during the calendar year. Above this threshold, the recognition of speculative activity was triggered, whose profits are taxed at 26%, while below that threshold no tax was charged. Read More…
