26% Tax Is Imposed On Cryptocurrency Gains In Italy
Italy imposes a 26% tax on cryptocurrency capital gain in the 2023 budget. If you get involved in crypto and make investments, you have to pay tax on your capital gain. It is mentioned that if your capital gain reaches 2,000 Euros in a tax period, you will be charged a 26% tax.
The government inspires people to disclose their crypto holdings. Crypto tax can be a great source of revenue for the government. If you declare your crypto holdings on January 1, 2023, you can pay a 14% tax. This incentive is intended to encourage people to get involved with this movement and pay taxes on cryptocurrency.
There are mixed reactions to this new crypto tax policy. Paying a 26% tax on crypto capital gain is too much. And it can discourage people to make investments in cryptocurrency. You usually take a high risk in the crypto market. But when you make a profit, you have to pay too much in tax. So how much will be there for you after taking all risks to invest in cryptocurrency?
Some people may not consider investing in crypto as a viable option. The government does not like people to get involved in crypto, but there is nothing much to do when it comes to cryptocurrency. It is proved that they cannot ban crypto.
China banned crypto many times in the past. If banning cryptocurrency works, the government does not have to ban it again and again. It shows the power of decentralization. It cannot be stopped. A country can take initiatives to prevent people from participating or make it difficult to get involved in crypto, but people from the rest of the world can use it to do whatever they want.
Some people think that it is a good move to impose the tax. The authority recognizes crypto as an asset class and makes it clear what can be done. Big institutions feel comfortable investing in cryptocurrency and the crypto market will grow.
You do not feel bad thinking you are doing something that falls into a gray area or does not recognize by the government. It will inspire many people to get involved in crypto and make investments. And it will lead to the mass adoption of the cryptocurrency that we dream of.
So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.
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Taxation is theft and not only is this blackmail but this is just a joke. I absolutely would not tell the government anything. In fact the government doesn't deserve to know as the government can't even balance its taxes.
So, how you'll cash out out crypto?
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A little bit at a time. Here it doesn't exist until you pull it out.
Big guys find a way to pay less tax or they have more options to get tax benefits. The poor and middle-class people end up paying (high) taxes. This is not fair.
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Then start a business. Learn about taxes and how to not pay them legally.
I think they are just treating it as a source of income and it's what I expected from the government. However, I honestly don't see many people even making money this year due to the huge fall in prices. Personally, I think the government is just stealing money away from us because of how they utilize money to enrich their own pockets.
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They see that they can make a lot of revenue by imposing a high tax rate. And they are doing that. I do think many governments are going to do the same thing in the coming days.
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