Italian Parliament Approves 2023 Budget Bill Imposing 26% Capital Gains Tax on Cryptocurrencies

A 26 percent capital gains tax will be imposed on cryptocurrencies under a 387-page 2023 budget bill approved by the Italian parliament, CoinDesk reported. The budget bill legitimizes cryptoassets by defining them as “digital representations of value or rights that can be transmitted and stored electronically using distributed ledger technology or similar technology.” The tax policy aims to tax cryptocurrency trading profits above 2,000 euros. As an incentive to declare cryptocurrency gains tax, the new bill also sets an “alternative income tax” for investors of 14 percent on the value of holding assets as of Jan. 1, 2023, rather than the cost at the time of purchase. Also, under the new rules, losses on crypto investments can be deducted from profits and carried forward.