You've just dived into the world of cryptocurrencies and want to better understand how it works. You must consider that in the world of cryptocurrencies there is also taxation and we want to explain to you little by little how it works and consequently how to proceed
The world of cryptocurrencies is slowly expanding more and more, even invading the world of online slot machines. This is a new type of market which is, over the years, becoming more and more widespread and represents a new way to invest and make a lot of money. But you must know that taxation is also involved, which corresponds to payment of taxes on earnings linked to activities involving cryptocurrencies such as Bitcoin, Ehereum and others. According to the 2023 Budget Law, cryptocurrencies are among those financial instruments that produce different incomes, for this reason a substitute tax is applied, but only if a gain, called capital gain.
When to pay taxes | Cryptocurrency taxation: how does it work?
Cryptocurrency taxation was initially set for June 2023, but was eventually pushed back to September 2023. From then on, it is possible, but also mandatory, pay a tax on earnings made with cryptocurrencies. These months have served to understand better who has to payhow he has to pay and how much he has to pay. Generally speaking, taxes must be paid in the tax period in which there is a taxable event, such as the sale of cryptocurrencies or earnings from mining. Very important keep track of transactions and earnings made to make sure you are in compliance with all tax obligations.
How to pay | Cryptocurrency taxation: how does it work?
Per declare various incomes, these must be indicated in the RT Framework of the PF Income Model, but also include them in the RW Framework to allow fiscal monitoring and payment of IVAFE. The amount that is subject to taxation is the value of the cryptocurrency calculated at the exchange rate in euros. The RW form must be filled in only if the cryptocurrencies are located in a digital wallet located abroad or if they are stored on sticks or PCs.
How much do you pay | Cryptocurrency taxation: how does it work?
Taxes are calculated based on a single substitute tax equal to 26%. Crypto assets, being comparable to financial assets, are taxed accordingly. To generate a profit, these cryptocurrencies must have generated capital gains of a certain amount above 2000 euros. The amount of taxes to be paid then depends on various factors, such as the type of business you carry out, whether you operate as a private individual or as a company. In Italy these are subject to various taxes, such as income tax and capital gains tax. Talking about theincome taxearnings derived from cryptocurrencies can be considered as self-employment income or different income, depending on the activity.
Cryptocurrency Taxation for Society | Cryptocurrency taxation: how does it work?
Cryptocurrencies are considered as gods intangible assets, therefore they are placed in the company's income statement among intangible assets. These cryptocurrencies can form business income for IRES or IRAP purposes only if they are sold in FIAT currency, transformed into other goods, if they are purchases of NFTs or if they are used in staking.
A market yet to be defined
The taxation of cryptocurrencies in Italy is a very complex and still evolving topic. They are still there defining the details, so everything is still very intricate and complex to grasp. But it's still important to understand how it works and how much you pay in cryptocurrency taxes for avoid tax problems and recognize any scammers. What we recommend is to keep track of all transactions and pay attention to all the news on the subject.
We hope that this guide on cryptocurrency taxation has been helpful to you and that everything is a little clearer to you. Although, we repeat, everything is still to be defined. Continue to follow us on techgameworld.com for other guides from the web and social world and much more!