Originally published on: October 16, 2024
The Italian government is contemplating a significant increase in the capital gains tax on Bitcoin investments, with plans to raise it from 26% to 42%. Deputy Economy Minister Maurizio Leo made the announcement during a press conference at Palazzo Chigi on October 16, following the approval of Italy’s new budget bill by the Council of Ministers.
Leo revealed that the proposed withholding tax on Bitcoin capital gains is part of the budget bill, aiming to bring it up to 42%. Additionally, the bill seeks to eliminate the minimum revenue requirement for Italy’s “web tax,” also known as the Digital Services Tax (DST), introduced in 2019 as part of the country’s budget.
The DST currently applies to companies that earned at least 750 million euros ($817 million) in the previous calendar year, with a minimum of 5.5 million euros ($5.9 million) in revenue from digital services in Italy. These measures are part of Italy’s efforts to raise funds, with a recently approved 30 billion euro ($33 billion) budget for 2025, partially financed through a levy on Italian banks and insurers.
Further approvals are required from the Italian parliament before the budget measures can be implemented, with a final vote expected by the end of the year. Prime Minister Giorgia Meloni announced plans to generate 3.5 billion euros from banks and insurers to enhance public services and support vulnerable citizens, without imposing new taxes on the general population.
Italy’s move to raise the capital gains tax on crypto asset trading over 2,000 euros to 26% was previously approved in late 2022 as part of the 2023 budget. Stay updated on more cryptocurrency news and developments by subscribing to our newsletter for critical insights and investment opportunities in the market.
