On December 29, 2022, days before the end of the year, the Italian Senate approved its 2023 budget, which included a tax increase for crypto investors: a 26% tax on capital gains on trading crypto assets above €2,000 (approximately $2.13 at press time).
The approved legislation 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 like currencies in the country, with lower taxes.
As Cointelegraph reports, the bill also states that taxpayers will have the option to declare the value of their digital asset holdings starting January 1 and pay a 14% tax, incentives intended to encourage Italians to declare their assets. digital assets.
Other changes introduced by the budget law include tax amnesties to reduce penalties for non-payment of taxes, tax incentives for job creation, and a lowering of the retirement age.. It also includes 21 billion euros ($22.4 billion) of tax breaks for businesses and households coping with the energy crisis.
Giorgia Meloni, the first woman to serve as Italy’s prime minister, received broad support for her bill from the legislature, despite the fact that she promised drastic tax cuts when she was elected in September.
According to local media, the Italian government’s measures to reduce gas consumption throughout the country include more than 15 days without central heating for buildings, and asking the population to lower their heating and the turn off an extra hour a day during winter.
The Italian legislation follows the approval of the draft law on Cryptocurrency Markets (MiCA) on October 10, which establishes a coherent regulatory framework for cryptocurrencies in the 27 member countries of the European Union. MiCA is expected to go into effect in 2024.
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