The Italian Government Tariks Crypto Income Tax As Large As 28 Percent

Italy increases crypto income tax. (Photo; Doc. BTC Shore)

JAKARTA Italy's financial authorities have reportedly tightened regulations and taxation in the crypto industry. The decision comes after the government targeted higher profits from crypto asset trading by 2023.

According to a Bloomberg report, the provisions in the budget proposed by the far-right government led by Prime Minister Giorgia Meloni extend to crypto assets with a 26 percent levy of capital gains exceeding the 2,000 euros threshold.

In addition, the government also offers options for collecting income taxes from cryptocurrencies. Therefore, crypto owners are urged to disclose the value of their assets on January 1 yesterday and will be taxed at 14 percent. The crypto income tax to be charged is 28 percent.

The goal is to stimulate Italian taxpayers to disclose their holdings in their tax returns. Under current tax rules, digital currencies and tokens are treated in Italy as foreign currencies taxed lower.

Launching Bitcoin.com News, a bill, which may still be undergoing changes in parliament, also introduces the obligation to disclose and expand stamp duty to cryptocurrencies.

About 1.3 million Italians (2.3 percent of the country's population) own crypto assets, according to the report, citing triple A data. Meanwhile, crypto owners in the UK are 5 percent and 3.3 percent in France.

The policy of the Georgia Meloni administration in Italy that is strict towards crypto appears to be in the footsteps of another country, Portugal, which has raised the crypto profit tax by 28 percent starting this year.

The tightening of crypto taxes and increasing regulations comes amid tightening the policy of global crypto regulation after the collapse of one of the world's largest crypto exchanges, FTX in early November.