CRYPTO CURRENCIES TO BE REPORTED IN SECTION RW OF THE INCOME TAX RETURN

In some documents of practice (Resolution No. 72/E/2016, Question 956-39/2018, No. 903-47/2018), the Revenue Agency has assimilated cryptocurrencies as well as ICO (903-47/2018) to foreign currencies.

Article 4, paragraph 1, dl 167/1990, has placed the obligation for residents in Italy who, in the tax period, hold investments abroad or foreign activities of a financial nature, capable of producing taxable income in Italy, to indicate them in the annual income declaration (Section RW)

Since 2019 (tax period 2018) the instructions for the compilation of the RW section provide for the indication of virtual currencies, without the need to report the foreign State of detention. In similar terms the Regional Administrative Court of Lazio has expressed, with the sentence 1077/2020. The Revenue have asserted, moreover, that the Ivafe is not due.

With the answer to the (non-public) question n. 956-39/2018, the Regional Directorate of Lombardy clarified that: “Pursuant to Article 4 of Decree-Law No. 167 of 1990, there is also an obligation to compile the RW section of the Income – Individuals Model, by natural persons resident in the territory of the State that, in the tax period, hold foreign investments and foreign assets of a financial nature capable of producing taxable income in Italy, including foreign currencies. Since the general principles governing transactions in traditional currencies and the anti-money laundering provisions apply to virtual currencies, it is considered that virtual currencies should also be reported through the above-mentioned RW framework. The euro equivalent of the virtual currency held on 31 December of the reference period shall be determined at the exchange rate indicated at that date on the website where the taxpayer purchased the virtual currency.

Finally, it should be noted that virtual currencies are not subject to tax on the value of financial products, current accounts and savings books held abroad by natural persons resident in the territory of the State, as this tax applies to deposits and current accounts exclusively of a “banking” nature (circular 2 July 2012, n. 28/E).