Cryptocurrency taxation, clarifications from the Revenue Agency

Cryptocurrency taxation clarifications from the Revenue Agency

(Finance) – Clarifications from the Tax Office on the taxation of crypto-assets introduced by the latest budget law are ready. The Revenue Agency announces this, explaining that crypto-assets are defined as all those digital representations of value or rights that do not fall under financial instruments.

For natural persons, capital gains from crypto-assets are taxable at the same rate applicable to financial activities (26%) provided that the income is not obtained in the exercise of business activities, arts or professions or as an employee . The same capital gains are also subject to taxation for non-commercial entities (if the operation is not carried out in the exercise of a commercial enterprise), for simple and equivalent companies and for non-resident subjects without a permanent establishment when the income is considered to be produced in the territory of the state.

The circular reminds that they are considered to be produced in Italy “other income” deriving from “activities carried out” in the territory of the State and from “assets” located in the same territory. The new regulations therefore also include income earned by non-resident subjects if it relates to crypto-assets held in our country with service providers or intermediaries resident in Italy or at their permanent establishment if non-residents.

In cases where the crypto-assets (i.e. the keys that give access to them) are held “directly” by the subject via storage media (such as USB sticks) without the intervention of the intermediaries or service providers mentioned, the income it is considered produced in Italy if the storage medium is located in the territory of the State. To this end, continues the Revenue Agency, it is presumed that the income is produced in Italy if the person who holds the storage medium is resident there in the tax period of production of the income. The taxpayer remains entitled to prove the actual location of the storage medium. The possibility is provided for subjects who already held crypto-assets on 1 January 2023 to re-determine the cost or value of their purchase provided that the same value is subject to a substitute tax of 14%.

To benefit from this subsidized regimeo it is necessary for the taxpayer to pay the substitute tax in full, or the first of three annual installments of the same amount, by 15 November 2023.

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