Italy’s Tax Office Increases Bitcoin Holding from 26% to 42%

The Italian government has announced a significant increase in capital gains tax on Bitcoin Holding and other cryptocurrencies, moving from 26% to 42% for gains exceeding 2,000 euros. Furthermore, part of the 2025 budget, aims to bolster resources for initiatives supporting families, youth, and businesses.

The revised tax scheme, which comes into effect with the 2024 Income Model (the first tax return for the 2023 tax year), marks a significant shift in the Italian cryptocurrency landscape.

Capital Gains on Bitcoin Holding Increase

Previously, capital gains exceeding 2,000 euros were taxed at 26%. This latest measure underscores the government’s commitment to generating revenue from this rapidly evolving asset class.

The news comes alongside further announcements concerning a revised “web tax” policy. Deputy Minister of Economy Maurizio Leo revealed that the government is working on eliminating the existing ceilings for web tax revenue, removing the 750,000 euro cap and the 5 million euro limit on revenue generated in Italy. These changes aim to ensure more comprehensive taxation of digital revenue streams.

The budget also features measures aimed at combatting tax evasion by promoting digital transactions and reducing reliance on cash. Starting in 2025, a paper receipt will no longer suffice for reimbursement of taxi fares, requiring the use of credit cards. This move, part of a broader effort to improve the traceability of expenses, extends to businesses seeking deductions for representation expenses, which will also require credit card payments.

Deputy Minister Leo highlighted the importance of connecting POS (point of sale) terminals with cash registers to bolster the accuracy and transparency of financial transactions.

Japan’s FSA Proposes Tax Reform for VCT (Bitcoin)

The Japanese Financial Services Agency (FSA), the country’s sole financial regulatory body, has highlighted the need to reassess the tax framework surrounding virtual currency trades in its tax reform proposals for fiscal year 2025. The move comes as part of the FSA’s larger “Plan to Double Income and Achieve a Nation Built on Asset Management,” which categorizes crypto assets as virtual currencies.

By including virtual assets within this broader framework, the FSA has initiated a crucial step towards establishing a more defined and comprehensive tax structure for cryptocurrencies. The agency proposes exploring the categorization of these assets as investment financial assets, which could pave the way for clearer tax treatment and a more consistent regulatory landscape.

Additionally, the review of virtual currency taxation stems from recommendations put forth by numerous government ministries and institutions advocating for tax reform in this area. While a definitive decision has yet to be reached, the cryptocurrency sector remains closely attuned to the deliberations of the ruling party’s Tax System Research Committee and the National Diet. The outcome of these discussions could have a significant impact on the future of cryptocurrency trading and investment in Japan.

Moreover, by initiating a review of the tax framework, Japan is actively participating in the ongoing global conversation surrounding the regulation and taxation of virtual currencies.