The latest Government Budget Act set the first legal framework for taxation of cryptocurrencies. Ministry of Economy and Finance with a press release dated 13 June Three-month extension of the payment terms of the substitution tax on cryptoassets from June 30 to September 30, 2023. What does it mean? This means taxpayers will have an additional 90 days to reassess the assets they hold in their portfolios. Let’s try to set things right and re-examine the law to which the latest MEF press release refers.

Cryptocurrency taxation in Italy: how much is the replacement tax?

The recent Budget Law has brought important innovations to our legislative environment. Among them is the possibility of re-determining the value of crypto-assets held on January 1, 2023. What is the rate of this rule? As shown in our previous study, It is possible to assume the default value at the beginning of 2023 as the purchase cost of cryptocurrencies.. By doing this, the difficulties arising from the long and expensive process of restructuring the original purchase cost will be eliminated, since it is sufficient to consider the value of one’s own cryptocurrencies as the cost of purchase on January 1, 2023. can reassess the cost of purchasing their own cryptocurrencies and Pay the 14% replacement tax instead of the regular 26% tax. Until 30 June 2023, with the possibility to repay this tax in three equal installments per year against 3% interest payment.

Due to the still remaining uncertainty and to allow operators to adapt, it was decided to extend the deadline after the summer. The deadline for the revaluation of cryptocurrencies will be extended to September 30, with the 14% substitute tax option originally scheduled for June 30. In short, taxpayers will have more time to evaluate the appropriateness of revaluation of their assets.

Truth be told, taxation of cryptocurrencies through the substitute tax is not the only issue left open: there is no enforcement provision yet to allow the legalization of cryptoassets that are not declared until the 2021 tax period. The 2023 Budget provides that taxpayers who have not specified their crypto assets in their tax return until 31/12/2021 can apply for disclosure.

Cryptocurrency taxation through amnesty: when will it be possible?

About what? In practice, relevant persons who did not earn any income during the reference period can adjust their status by showing the assets held at the end of each tax period.

Therefore, it is a real amnesty. The necessary condition to benefit from the amnesty, A penalty of 0.5% per year of the value of undeclared assets. This type of amnesty is available to all taxpayers who have not declared cryptocurrency but have not earned income.

Those who earn income in the periods until 31.12.2021 will be able to arrange their positions through the same application. At what price though? In this case, the fine increases to 3.5% of the value of the assets held at the end of each year. or during construction. To this penalty is added interest and a penalty of 0.5% for failing to complete the RW portion.

This last issue is still an open construction site. Beyond the issue already discussed, namely paying a fine for violating a non-existent law, a fundamental piece is still missing: The provision that would have to determine the procedures for the submission of a request for clemency has not yet been enacted..