Topic: Italy forces consumers to BitCoin: "20% Tax On All Inbound Money Transfers" (Read 8461 times)

Thank you for your contribution, point noted. Income of BTC-related revenue, however when my taxes list was made, was not intended to look like million-euro business nor it included huge extra high income taxes, but just relate to small transactions which constitute the majority of BTC circulation.

All above mentioned countries, states and territories (some of which are ommited because of insufficient tax information which I haven't got at the time I was writing that text) have some form of EU, EU-related, or other superstate and international integrations related to Europe - membership, meaning that to some extent their own monetary and fiscal policy is not drafted solely by their governments sovereign right, but are also influenced by EU-goverment and Council of Europe and other bodies.

Ukraine and Russia are not part of those integrations except separate NATO alliance forums with each specific country (Ukraine and Russia respectively). Another thing is that Russia is super-continental giant not mainly in Europe, but in Asia too, and if Russia would be included in this brief TAX overview, so I would have to include approx at at least 100 other nations governments...

Positions of current ukrainian government toward their currency, taxes, future fiscal measures and bitcoin issues are also due to known issues - a shaky ground since this might change any day, and russian taxes, for most readers of this thread, which are, I presume, from Italy, would be out of the scope of this topic.

However it was not intended to offend anybody from Ukraine nor Russia (by unintentionally stipulating they are not in Europe, which they are), just that since this was Italian issue, and Italy being a EU member country, the aim was to corelate italian taxes with the rest of Europe, mostly with EU-member territories.

Good news for the British, however still not public policy in the most of other EU member states, but here is official statement :

...meaning HMRC (UK TAX SERVICE) will formally remove a VAT on bitcoin trading in the UK this week:

http://www.hmrc.gov.uk/briefs/vat/brief0914.htm

If you look closely, then you will find that in pro-Feminist countries, the tax is high. For example, in Sweden it is more than 50%. In anti-Feminist countries, the tax is lower. For example, in Russia it is 13%.

There is a valid reason for this, which I don't need to explain.

There gonna be a revolution soon. Governments are being way too greedy. 'Tax everything' politics would bite them in the ass. Sooner than they may think.

According to you Arab majority Azerbaidzhan is in Europe, while Ukraine and Russia are non-European nations?

What everyone should do is never cash it out, Bitcoin is money by itself, It's value is backed by it's ability to be traded for other things, Really a Bitcoin exchange is much like a Forex exchange, When you sell BTC for USD or EUR you are just trading one money system for another. We really don't need fiat money anymore, Governments have no control over Bitcoin, The only thing they can regulate are fiat toilet paper transactions.

Fiat toilet paper is only good for paying the government taxes and fees, Paper is the money of slaves.

His 75% income tax wasn't constitutional so instead it's a new special corporate tax companies have to pay if they give salaries over 1 million euros.

that is not cool..

but there is a quick fix for this

localbitcoins.com

screw you goverment

it would be okay if you had to pay taxes on profit but 20% on all transactions?
damn..

that would make buy low,sell high business go out of business

Well it is nothing surprising, most of the countrys would regulate it too sooner or later. From one point of view it might make it easyer for some of country's that want to get into bitcoin related activities in Italy, on other hand we should expect more regulations, that would take away some of biggest bitcoin advantages.

For you info the tax has been removed. in the few cases where it was applied the money will be returned back.

It's China and the US, not China and Russia.
Is that the base of your theory and caused you all-in with IXC? If so, this entire theory of West fighting East on crypto field is, unfounded.

Thank you all for sharing.

It is starting to be more cost effective to encourage people to accept bitcoin rather than move to fiat. Especially if fiat incurs yet-another-tax-stupid-tax.

These old school currency people are great at devaluing their fiat.

This was just a quick approximation for people to see, where actually Italy is regarding taxes. So 20% is not much. If you hate paying young Firenza's mayor, find other ways of money transfer, after all BTC was invented for that purpose, not just for mining...but for actual paying, that is to circumvent and avoid present payment systems and greedy banks.

That list is not entirely correct. For example Hollande's new French tax reaches 75% (including social security) and Denmark has up to 51.5%, plus some other fees that make them pass Sweden in some cases.
https://en.wikipedia.org/wiki/List_of_countries_by_tax_rates

We're in violent agreement here. More to the point AFAIU the 20% cut is applied to all incoming bank transfers, no matter the amount involved be it 20 or 20K euro.

Sure it's not a new tax, it's worse, it's something quite unusual and frightening, and if applied to small amounts of money, that will hurt common people having family abroad far more than real tax evaders who wouldn't dare to wire big sums anyway.


This isn't up to date, with the crisis these taxes have been modified in many countries (often up, sometimes down).

For France (my country) it's 45% and even 75% over 1 million euros (only for 2 years).

For Italy it's also up to 44-45% (progressive).

it's not a new tax. you're already supposed to pay the tax on such money if they represent an income.

Now Italian Gov. simply suppose by default that every incoming bank transfer is taxable as income. 

They have simply switched the burden of the proof, hence the risk of paying a not due tax.

E.g. think of someone who simply forgot to prove to Italian IRS that those money were related to remittances those 20% simply won't come back.

Some facts :

...regarding income withholding tax in Europe, and the position of new tax law in Italy, things are as follows :

LOWEST INCOME TAX IN EUROPE :

1. GUERNSEY (UK CHANNEL ISLANDS) - max income tax - 0% (for non-Guernsey residents)
1. MONACO - max income tax - 0%

2. MONTENEGRO - max income tax - 9% (flat tax)

3. ALBANIA - max income tax - 10% (flat tax)
3. BOSNIA & HERZEGOVINA - max income tax - 10% (flat tax)
3. MACEDONIA - max income tax - 10% (flat tax)
3. BULGARIA - max income tax 10% (flat tax)

4. CZECH REPUBLIC - max income tax - 15% (flat tax)
4. PALESTINE - max income tax - 15% (flat tax)
4. GEORGIA - max income tax - 15% (flat tax)
4. LITHUANIA - max income tax - 15% ( flat tax)
4. SERBIA - max income tax - 15% (flat tax)

5. HUNGARY - max income tax - 16% (flat tax)
5. ROMANIA - max income tax - 16% (flat tax)

6. MOLDOVA - max income tax - 17% (brackets, progressive)

7. DANMARK - max income tax - 18,67%

8. SLOVAKIA  - max income tax - 19% (flat tax)

9. ISLE OF MAN - max income ta - 20% (flat tax)
9. JERSEY (UK CHANNEL ISLANDS) - max income tax - 20% (flat tax)

>>>>>>>>>>>>>> ITALY - max income tax - 20% <<<<<<<<<<<<<<<<<<<<

10. ESTONIA - max income tax - 21% (flat tax)

11. LATVIA - max income tax - 26% (flat tax)

12. NORWAY - max income tax - 28% (30% tax penalty tax, brackets, progressive)

13. AZERBAIDZJAN - max income tax - 30% (brackets, progressive)
13. CYPRUS - max income tax - 30% (brcketds, progressive)

14. FINLAND - max income tax - 31.75% (brackets, progressive)

15. ICELAND - max income tax - 33% (above 7 800 001.00 ISK (Icelandic Kronas)

16. POLAND - max income tax - 32% (brackets, progressive)

17. ANDORRA - max income tax - 35% (The tax on taxation of savings on interest on monetary and fixed return products deposited in financial bodies in Andorra by individuals residing in one of the member states of the European Union. The withholding tax rate on interest was 20%, until June 2011 when it was raised to 35%.Division of taxes : The Principality of Andorra retains 25% of the revenue coming from this retention and transfers 75% of it to the public treasury of the member state of the EU where the end beneficiary resides, while maintaining banking secret when managing this transaction, i.e. the person from whom a part of the interest has been retained will not be identified. Andorra does not disclose the individual names of the EU residents from whom tax is withheld. This tax began to be levied on 1 July 2005.) (flat tax)

18. MALTA - max income tax - 35% (brackets, progressive)
18. TURKEY - max income tax - 35% (brackets, progressive)

19. GIBRALTAR - max income tax 35 or 40% (decision by taxpayer if gross or allowances based tax is chosen)

20. LUXEMBOURG - max income tax - 38.95% (brackets, progressive)

21. ISRAEL - max income tax - 39% (brackets, progressive)

22. CROATIA - max income tax - 40% (brackets, progressive)
22. FRANCE - max income tax - 40% (brackets, progressive)
22. GREECE - max income tax - 40% (brackets, progressive)

23. IRELAND - max income tax - 41%
23. SLOVENIA - max income tax - 41% (brackets, progressive)

24. SWITZERLAND - max income tax - 42.28% (depending on canton, brackets, progressive)

25. SPAIN - max income tax - 43% (brackets, progressive)

26. GERMANY - max income tax - 45%

27. MADEIRA (PORTUGAL) - max income tax - 45,88% (brackets, progressive)
27. PORTUGAL - max income tax - 45,88% (brackets, progressive)

28. AUSTRIA - max income tax - 50%. (brackets, progressive)
28. SAN MARINO - max income tax - 50% (brackets, progressive)
28. BELGIUM - max income tax - 50% (brackets, progressive)
28. UNITED KINGDOM - max income tax - 50% (brackets, progressive)

29. NETHERLANDS - max income tax - 52% (brackets, progressive)

30. SWEDEN - max income tax - 57,77% (brackets, progressive)

I have to admit that i forgot to read the english title before saying that it's true (anyway the zerohedge article is correct)

20% is taken upfront and given back if you prove that it's not in any way taxable. (good luck with that)