Italy Wants to Charge 26 Percent Tax on Crypto Profits Over $2,000
Italy has proposed a crypto law bill that will allow the country to levy a 26 percent tax on crypto profits above $2,000 (roughly Rs. 1.62 lakh). Currently, the bill has not yet received all the necessary approvals to be passed by the government. If approved, the laws surrounding the crypto sector could come into force in the country in 2023. Like other countries, Italy has been working to create a law for the crypto sector, so that investors who venture into this sector can adhere to as many measures as possible. . .
Although cryptocurrencies are generally unregulated, governments around the world are working to tax profits generated from crypto activities, in order to keep certain records of crypto transactions.
Once signed into law, the proposed bill would allow taxpayers to file additional compensation for declaring their crypto holdings and paying a 14 percent tax, according to Bloomberg. reports,
Crypto operations are reportedly growing rapidly in Italy in recent times.
research firm Triple-A estimates that more than 1.3 million, or 2.26 percent of the Italian population, currently own cryptocurrency.
Back in July, the Organismo Agenti e Mediatori (OAM), the top financial regulator in Italy, approved the operation of CryptoCom in the country.
Later that month, the Coinbase crypto exchange also received permission from Italy’s OAM to continue serving Italian customers.
Italy’s Ministry of Economic Development, earlier this year, had planned to invest $46 million (roughly Rs. 364 crore) in funding to develop projects around blockchain, Artificial Intelligence (AI), and the Internet of Things ( IoT).
The country may be on the line to adopt and follow the MiCA regulation, which was recently approved by the European Union and is expected to enter into force around 2024 for all members of the bloc.
The MiCA Act aims to prevent insider dealing, illegal disclosure of inside information, and market manipulation related to crypto-assets.
Meanwhile, other nations that tax crypto profits include India, where a 30 percent tax is levied on profits from crypto transactions.
In the US, crypto is considered a commodity, not a currency. The US’ Internal Revenue Service (IRS) imposes a tax of between 10 to 20 percent on crypto transactions in the US, it is reported that based on how long the goods have been stored.