Italy to raise capital gains tax on Bitcoin from 26% to 42%

The Italian government is considering increasing the capital gains tax for investments in Bitcoin (BTC) from 26% to 42%, according to Deputy Economy Minister Maurizio Leo.

Speaking at a press conference at Palazzo Chigi on Oct. 16, Leo provided remarks on Italy’s new budget bill approved by the Council of Ministers.

According to the budget bill, the withholding tax on Bitcoin capital gains should rise to 42%, the Minister stated.

Italy also plans to remove the minimum revenue for the Digital Services Tax

Leo also mentioned that the bill would remove the minimum amount of revenues for Italy’s “web tax,” or the Digital Services Tax (DST), which was introduced as part of the country’s budget in 2019.

The DST applies to companies that generated at least 750 million euros ($817,000) in the past calendar year and at least 5.5 million euros ($5.9 million) in revenues from operating digital services in Italy.

The Minister stated:

“On capital gains from Bitcoin, the withholding tax increases from 26% to 42%. On web tax revenues we are working to eliminate the ceiling of 750 million euros and 5 million in Italy, therefore we are eliminating the thresholds.”

This is a developing story, and further information will be added as it becomes available.