Italy ups crypto capital gains taxes to 42%

The Italian government announced plans to raise the taxes on crypto capital gains from 26% to 42%.

Italy’s Deputy Minister of Economy Maurizio Leo shared his intention to increase taxes on cryptocurrency-related capital gains drastically, local financial news outlet Il Sole 24 Ore reported.

If adopted, the measure would mean that profits from selling assets such as Bitcoin (BTC) would be taxed at 42%, as would the profits from staking.

The Minister proposed the crypto tax hike as part of a broader coordinated action to generate additional revenue to support families, young people, and businesses in Italy. Italian citizens will be required to include their cryptocurrency holdings in the “Redditi Persone Fisiche” and 730 forms — clearly stating the capital gains made through the sales of cryptocurrencies or other related gains.

Cryptocurrencies are to be listed in the foreign financial activities section of the 730 form. Andrea Ferrero, the CEO and co-founder of European crypto exchange Young Platform, announced in a LinkedIn post that the company will look for ways to contact the government about the implementation of the measure.

Chief technology officer at crypto exchange Bitfinex and CEO at Tether Paolo Ardoino also voiced his concern in an article published by local press outlet La Stampa. According to him, the tax rate hike will cause Italy’s brain drain and also lead to a loss of capital from the country. He said:

“It is a measure that hits primarily young people and cryptocurrency startups.”

The measure will likely cost Italy a lot, considering that recent research listed the country among the most crypto-friendly locations. This is a title that the nation has almost surely lost after floating a sudden drastic tax rate hike on the industry.

While Italy is seemingly looking to diminish the relevance of the cryptocurrency sector in its economy, other governments are clearly looking to profit from it. Earlier this month, Ohio State Senator Niraj Antani proposed a new bill to allow local citizens to pay taxes in crypto.

The post Italy ups crypto capital gains taxes to 42% appeared first on ReadWrite.