The Italian Senate adopted the increased tax rate for cryptocurrency trade as part of the budget legislation for 2023. Before the end of the year, on Dec 29, 2022, the Italian Senate backed the budget for 2023, which included an increase in taxation for cryptocurrency investors: a 26% capital earnings tax on trades involving crypto assets worth more than 2,000 euros (around $2,13 at the time).

Crypto assets are “a digital representation of value or rights that may be exchanged and maintained electronically, utilizing distributed ledger technology or comparable technologies,” according to the law that has been adopted. Before this, the nation considered cryptocurrencies as foreign currency with lower taxes.

The legislation also stipulates that taxpayers would have the option to report the value of their digital asset holdings as of January 1 and pay a 14% tax, providing incentives to encourage Italians to register their digital assets.

Tax pardons

Tax pardons to lower fines for late tax payments, financial motivations for job creation, and a lowering of the retirement age are some of the other changes made by the budget bill. The Tax motivations of 21 billion euros ($22.4 billion) are also included for people and businesses struggling with the energy crisis.

Despite having pledged significant tax savings when she was elected prime minister of Italy in September, Giorgia Meloni gained strong backing for her measure from the parliamentary body.

The public was reportedly encouraged to lower their heating by one degree and turn it off one hour longer every day throughout the winter as part of government initiatives to cut gas use nationwide. These efforts included over 15 days without central heating for buildings.

The Markets in Crypto Assets (MiCA) bill, which established a uniform regulatory framework for cryptocurrencies in the 27 member nations of the European Union, was approved on October 10; Italy’s legislation came after that date. In 2024, MiCA is anticipated to go into force.