Gray Frame Corner

Crypto Amnesty Program in Italy

Italy has introduced a Crypto Amnesty program as part of the 2023 budget law. This allows for the disclosure of crypto currencies held at December 31st 2021, paying a one-off tax of 0.5% calculated on the year end value.

Crypto gains in Italy are defined as other sources of income and are calculated as the difference between proceeds and purchase price. Gains not exceeding €2,000 are not reported, while capital losses exceeding €2,000 can be carried forward for the next four tax years.

Taxation of Crypto Gains

Every tax resident in Italy is required to report any financial asset held overseas, including cryptocurrencies held in excess of €51,645.69 for a period of 7 days or more. The RW form must be filed in the annual tax return.

Reporting Requirements

Italy does not allow for taxes to be filed in arrear once the deadline has passed, and full fines are applicable to assets. Capital gains fines range from 120% to 240%, while foreign asset monitoring fines range from 3% to 6%.

Consequences of Missing the Deadline

The Italian tax office can track cryptocurrencies through information shared from exchanges with KYC procedures and through EU financial information exchange. The EU is also strengthening information exchange on cryptocurrencies through the DAC 8 procedure.

Tracking of Crypto Currencies

The Crypto Amnesty program allows for the disclosure of crypto currencies held at December 31st 2021, paying a one-off tax of 0.5% on the year end value or a one-off capital gains tax of 3.5% for gains realized up to December 31st 2021.

Crypto Amnesty Program

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