Italy is having a rethink concerning its initial plan to increase taxes on cryptocurrency capital gains. Under the 2025 budget, still awaiting approval from the Italian parliament, the Treasury planned to hike taxation on capital gains from cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) to 42% from 26%. The rising popularity of crypto investments fuelled the move to increase capital gains tax.
Generally, cryptocurrency transaction taxation remains a contentious issue. The change of mind comes after the country received some backlash from members of the burgeoning industry over the decision.
No More Prejudice About Cryptocurrencies
Members of the co-ruling League party opine that such a move would negatively on the economy of the country.
Lawmaker Giulio Centemero and Treasury Junior Minister Federico Freni perceived the tax increase as having to do with prejudice about cryptocurrencies. However, they also mentioned that an end has come to that era.
Therefore, instead of the intended increment, “The tax increase will be significantly reduced during the parliamentary work,” lawmaker Giulio Centemero and Treasury Junior Minister Federico Freni said. It is uncertain whether the capital gains tax will remain at 26% or move slightly to around 28%.
Czech Republic Proposes Simple Crypto Tax Regime
Many other countries are either considering crypto taxation or have already kickstarted the exercise. As announced by Prime Minister Petr Fiala of the Czech Republic, the nation is on the verge of passing legislation that would dramatically simplify the taxation of cryptocurrencies.
To encourage innovation and crypto adoption, citizens who have held cryptocurrencies for more than three years would be exempt from capital gains tax upon selling. Also, there would be no need to report transactions valued below 100,000 koruna, approximately $4,200 annually.
South Korea Will Commence Crypto Taxation in 2027
South Korea is still determining if introducing crypto taxation at the time is the right step to take. Although it was initially scheduled to commence as of January 2025, the South Korea Democratic Party (KDP) has agreed to postpone introducing a crypto gains tax by another two years.
This is the third time South Korea will push back its digital asset capital gains tax implementation. Ultimately, this reflects the ongoing debates and controversy over the timing and impact of taxing cryptocurrency transactions.
The post Italy Makes U-turn on Hiking Capital Gains Tax For Crypto Transactions appeared first on TheCoinrise.com.
