Italy Mulling Over Imposing 26% Capital Gains Tax On Digital Asset Profits

Italy is mulling over tightening the regulations on digital assets next year by expanding its tax laws to include virtual currency trading, as per budget documentation released on 1st December.

Included in its next year budget are plans to impose a twenty six percent levy on profits larger than two thousand euros (around two thousand and sixty two dollars) made on virtual asset trading, as per Bloomberg. Historically, virtual assets have had lower tax rates because they have been considered “foreign currency.”

If the suggested bill is signed into law, taxpayers will have the option to declare the value of their virtual currency holdings as of 1st January and pay a fourteen percent tax. This is planned to incentivize Italians to declare their virtual currencies on their tax returns.

As per Tripe A data, 2.3 percent of the Italian population, which equates to approximately 1.3 million individuals, own virtual currencies. By the month of July this year, it was approximated that around fifty seven percent of virtual asset users were male, while forty three percent of users were female, with most of its users belonging to the 28–38 age group.

Interestingly, Portugal plans to create a “broad and adequate” tax framework aimed at addressing the taxation and classification of digital assets. The suggested tax bill covers operations involving virtual asset mining and trading as well as capital gains.