Cryptocurrency taxation in Italy is unclear

Cryptocurrencies, which work through cryptographic codes and complex algorithmic calculations, are assuming among the people a function more of investment than of payment.

The possible investment purpose was also recognized by the Italian legislator himself who, implementing the fifth Anti-Money Laundering Directive, added this specific purpose in the text of art. 1, c. 2, lett. qq) of the anti-money laundering law, under which virtual currency is meant the digital representation of value, not issued or guaranteed by a central bank or public authority, not necessarily linked to a legal tender currency, used as medium of exchange for the purchase of goods and services or for investment purposes and transferred, stored and negotiated electronically.

Despite the changes made, the Italian tax regime and the related obligations associated with the holding or sale of cryptocurrencies remain unclear.

It is therefore very important for those who hold sums deposited in cryptocurrencies to understand, together with their tax consultant, the correct classification in the next tax return, in order not to have the risk of major repercussions in terms of sanctions.

Finally, it is emphasized that the Italian Revenue Agency, responding to question no. 788/2021, considered it necessary to indicate cryptocurrencies in part RW of the tax return, even if held in wallets with private keys. Furthermore, only the monitoring obligation was confirmed, as they are not subject to IVAFE (Tax on the value of financial assets held abroad)