In the beautiful region of Canton Ticino, located in the Swiss Confederation, exciting preparations are underway for a new tax reform set to take effect in 2025. This reform, approved on May 21, 2024, is designed to create a more favorable environment for both companies and individuals operating within the region. One of the most significant changes included in this reform is the reduction of the corporate profit tax rate from 8% to 5.5%. This reduction aligns with the overall proactive vision of the region, aiming to reduce costs and encourage reinvestment in future endeavors.
Additionally, the reform introduces an increase in the deduction of the tax on profits from the capital tax, raising it from 10% to 16%. This adjustment is expected to significantly alleviate the tax burden for businesses and individuals, resulting in substantial savings for taxpayers. Furthermore, the reform includes a provision for a new differentiation for municipal multipliers, creating “hub fiscali” within Canton Ticino. This strategic move is intended to provide municipalities with the opportunity to save up to 10,000 CHF, enhancing the overall competitiveness of the region.
In terms of taxes on cryptocurrencies, the new tax reform in Canton Ticino aims to exempt individuals from taxation on capital gains derived from cryptocurrencies. Currently, cryptocurrencies are considered private wealth assets in the region and are subject only to the wealth tax, which ranges from 0.3% to 1% of the total value of assets. This favorable tax regime creates an ideal environment for the growth of the crypto industry in Ticino, known as one of the main Bitcoin hubs.
However, the situation is quite different in Italy, where the 2025 budget maneuver is set to increase the tax rate on capital gains from crypto activities. While in Canton Ticino taxes on crypto favor innovation and private investors, in Italy, the tax rate on gains generated from crypto activities will remain at 26% in 2025, with the exemption threshold below 2,000 euros being eliminated. Furthermore, in 2026, the tax rate on capital gains is expected to rise to 33%, further complicating the landscape for the crypto sector in the country.
In conclusion, while Canton Ticino is embracing a new tax reform to foster innovation and economic growth, Italy’s approach to taxing crypto activities may hinder the sector’s development. As the global crypto market continues to thrive, it is essential for countries to create a conducive environment through favorable tax policies to encourage investment and innovation in this emerging industry.