The Italian government has announced plans to raise capital gains tax on crypto from 26% to 42%.
The news was first shared by the country’s Deputy Finance Minister, Maurizio Leo, during a conference call on Wednesday.
Italy’s move to increase tax on Bitcoin is part of its plans to increase revenue for its 2025 budget. The European giant has seen an increase in digital asset activities and was recently listed as one of the crypto-friendly nations of 2024.
The move from 26% to 42% signifies an over 60% increase in crypto tax. While this has stirred conversations on social media, Italian lawmakers state that the additional revenue would be used to support businesses and young families.
🇮🇹 Italy’s Deputy Finance Minister Maurizio Leo announcing their plan to increase capital gains on Bitcoin from 26% to 42% because “the phenomenon is spreading.” 😮 pic.twitter.com/H3ebBE1rPP
— Bitcoin News (@BitcoinNewsCom) October 16, 2024
Italian taxpayers must declare their crypto holdings in the Redditi Persone Fisiche form. This includes any gains from sales or staking. They are also required to report these assets in the 730 form under foreign financial activities.
Furthermore, the Italian government is also planning updates to the web tax alongside changes to crypto taxation. The country’s Deputy Minister said plans were in place to remove the current thresholds, such as the €750,000 ($815,000) cap and the €5 million ($5.43 million) limit on revenue earned in Italy. This move will help simplify tax collection from digital services operating in the country.
🇮🇹 Italy’s announcement of their planned capital gains tax hike from 26% to 42% has been met with understandable negative reactions from the crypto faithful. Our latest insight covers some of the major reactions, and how things may change as a result! 👇 https://t.co/LYow9LTWZF pic.twitter.com/uctaXrwLA9
— Santiment (@santimentfeed) October 17, 2024
Reaction to the Tax Raise
Several users took to social media to complain about the tax hike. Some claim the move was a contrast to a promise made by Italian Prime Minister Giorgia Meloni. The politician allegedly assured the public that there would be no broad tax increase. However, it appears her comments were focused on general hikes and not specific markets like cryptocurrencies.
The UK is set to raise capital gains tax from 20% to 39% in the upcoming weeks.
Italy just raised capital gains tax on Bitcoin from 26% to 42%.
Work > Pay Income Tax > Invest your money > Take risk > Pay half your profits to them.
Governments are robbing us
Sad reality.
— Kaizen (@KAIZ3NS) October 16, 2024
Tether CEO Paolo Ardoino slammed the move , hinting that it could lead to a mass exodus of users from Italy. Countries like India adopted a similar tax hike for crypto. However, the move led to a significant decline in trading volumes. Investors moved to countries with friendly tax rates.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted risk tolerance levels of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
