Cryptocurrencies: Is Meloni’s Government Planning to Raise Taxes? What’s Your Take?
The Italian Government’s New Cryptocurrency Tax Measure
The Italian government is working on a measure that could significantly alter the tax landscape for cryptocurrency investors.
According to Maurizio Leo, the Deputy Minister of Economy, there is a plan to raise the taxation on capital gains from Bitcoin.
The current rate of 26% would increase to 42%.
This change would apply to the positive difference between the purchase price and the selling price of Bitcoin.
It is set to be implemented in 2025 as part of the upcoming economic maneuver.
This adjustment is poised to impact millions of Italians.
Recent data from the Blockchain and Web3 Observatory at the Politecnico di Milano indicates that by the end of 2023, over 3.6 million Italians will own cryptocurrencies or tokens.
Consequently, many could face significantly higher tax bills on potential capital gains.
Furthermore, this new tax measure would create an imbalance in how different financial instruments associated with cryptocurrencies are treated, as Bitcoin ETFs remain taxed at the current rate of 26%.
International Tax Comparisons
While Italy considers this tax hike, the United Arab Emirates is moving in the opposite direction by adopting a more favorable tax regime intended to attract investors and companies in the crypto sector.
On October 2nd, the Federal Tax Authority of the UAE announced an exemption from VAT on the transfer and conversion of digital assets, including cryptocurrencies.
This exemption, effective retroactively from January 1, 2018, aims to foster a business-friendly environment for digital asset transactions and to reinforce the UAE’s position as a global hub for the crypto industry.
This raises the question: Is Italy losing competitiveness compared to more crypto-friendly jurisdictions like the UAE?
Your Opinion Matters
Do you think Italy should align itself with more favorable tax models like that of the UAE, or do you believe that increasing taxes on cryptocurrencies is a necessary step? Share your opinion in the comments section below.
