Italy to impose 26% capital gains tax on crypto profits
If you make more than €2,000 trading cryptocurrencies, you will have to pay a 26% capital gains tax. Italy plans to make its tax laws apply to the trading of digital currencies in 2023, according to information about the budget that was made public on December 1.
If the bill being looked at now is passed and signed into law, taxpayers will be able to report the value of their digital assets starting on January 1 and pay a 14% tax rate. This will make it easier for Italians to include digital purchases on their tax returns.
Tripe A says that about 1.3 million people, or 2.3% of Italy’s population, own crypto assets. People thought that by July 2022, about 57% of crypto users would be men, 43% would be women, and most users would be between 28 and 38 years old.
In this case, Portugal and Italy are going in the same direction. Portugal, which used to be known as a cryptocurrency tax haven, came up with a plan in October to tax capital gains on cryptocurrencies held for less than a year at a rate of 28%.
The Portuguese government talked about how to tax cryptocurrencies in its state budget for the fiscal year 2023. Before, tax officials didn’t care about this problem because they didn’t think digital assets were natural ways to pay.Check out Bitcoin SuperStar for trading and investing advice.
Portugal wants to make a tax system that is “broad and appropriate” to answer questions about how to tax cryptocurrencies and how to group them. The new tax law would cover capital gains and the mining and trading of cryptocurrencies. The most important financial institutions don’t see crypto assets as money or cash. Stocks, bonds, and crypto assets are all taxed the same way because they are all taxed the same way.
Even though trading cryptocurrencies have a terrible reputation, the IRS will keep a close eye on actual investments. Cryptocurrency traders and investors need to know that there are many transactions, from the essential buy and sell orders to more complicated things like hard forks, airdrops, staking, etc.
Taxes have to be more complicated than they used to be because the cryptocurrency business has grown so quickly. Because of the rise of new, complex cryptocurrencies like gaming and gambling platforms and the creation of non-fungible tokens and hybrid tokens with specific uses, the asset class has changed. You can use better tax rules if you don’t live or pay taxes in the United Kingdom.
How much tax do you pay on money you make with cryptocurrencies?
Tax on income Anyone who buys, sells, or gets bitcoin through trade must pay taxes. A “day trader” actively buys and sells crypto assets to make money quickly. This is the best example.
But people who trade on their behalf are likely to have to pay capital gains tax. This is because they probably don’t fit the income tax definition of a “trader.”
When you buy and sell crypto assets, you are trading, which is what the word “trade” means. To trade, you need a clear goal, a high level of skill, a regular schedule, and a high level of organization.
If your net earnings exceed the trading threshold, you’ll have to pay income tax at 20%, 40%, or 45% and national insurance at 12% and 2%. On top of any other taxes that may be due, you must pay these taxes and fees.
You will have to pay taxes if you make money with cryptocurrency and claim it as income. Depending on your tax band, your tax rate in England, Wales, and Northern Ireland can range from 0% to 45%. If you live in Scotland, your first-rate will be 19%, and your moderate rate will be 21%. Only Scotland has these rates.
