Italian Parliament Approves 26% Tax For Virtual Asset Gains In 2023 Budget Law

The Italian Parliament has introduced a twenty six percent capital tax on digital asset gains as part of the current year’s budget law, which was approved on 29th December. The document also offers incentives for taxpayers to declare their virtual currency holdings, suggesting a three and a half percent aliquot for undeclared virtual assets held before 31st December, 2021, and half a percent fine for each additional year.

The Italian parliament greenlighted a new tax for digital assets on 29th December, as part of its budget law for the current financial year. Senators approved the document presented on 24th December, which approved a twenty six percent aliquot for digital asset gains over two thousand euros (approximately 2,060 USD) during a tax period.

In the same way, digital asset losses higher than two thousand euros in a tax period will count as tax deductions and will be able to be carried out to the next tax period.

Italy, which lacks comprehensive digital asset regulation, is following in the footsteps of Portugal. The European nation included a similar capital gains tax at a rate of twenty eight percent as part of its budget law for this year, a decision that might put in danger the status of the nation as a haven for digital asset organizations and holders.

The aforementioned proposal, divulged in the month of October, also contemplates taxes on the free transfer of digital assets and on the commissions charged by virtual asset exchanges and other virtual currency operations for facilitating crypto transactions.