During the last couple of months, there have been numerous attempts by governments to come up with new ways or taxing and regulating bitcoin and other digital currencies. According to recent reports, as Italy is currency dealing with a banking crisis, it seems like its government is looking for ways to tax bitcoin and implement clear regulation.
To put things better into perspective, it is important to note that the legal status of bitcoin tends to vary substantially from country to country, while also being undefined or in the process of changing in several regions. Most countries have allowed regulated, free trade, while others completely banned the currency, thus showing the disagreement in opinion between the world’s countries.
At this moment in time, similarly to most other countries, Italy has not made any official statement on the status of digital currencies. This means that it doesn’t represent a currency, or a commodity in the eyes of the finance ministry, and that the country doesn’t regulate individual and company use of cryptocurrencies.
However, the fact that it has value makes it eligible for taxation in the country. Few days ago, the local taxation office of the region published a draft proposal, meant to introduce bitcoin taxation. At this moment in time, it seems like the proposal is only focusing on bitcoin-based companies, which is a similar approach to those that many other countries have carried out. Assuming that the proposal ends up becoming a law, consumers should not be affected, regardless of the amount in bitcoin they hold.
It’s important to keep in mind that the Italian local taxation office is well-aware of the advantages and disadvantages of bitcoin. Because of this, there are several rumours that bitcoin-based companies will be taxed with a surplus value in case the value rises. Unfortunately, several sources have mentioned that cryptocurrency owners may be entitled to pay the same taxes later on, especially if they get their salary paid in bitcoin, or earn the digital currency for a living.
In mid-summer 2016, the European Commission unveiled their bitcoin proposals, and officially made bitcoin an exempt for taxation in member countries. Italy seems to be going against the flow at this moment in time, as taxing bitcoin will likely go head-to-head with the decision of the EC.
Based on everything that has been outlined so far, what do you personally think about the plans of Italy’s taxation office to implement bitcoin taxes for both companies, and possibly, for individuals? Let us know your thoughts in the comment section below.