The Italian Revenue Agency has drafted a proposal on the introduction of tax in respect of assets in cryptocurrency. It implies paying taxes on bitcoin surplus value in case of the value growth.

The resolution issued recently suggests that companies buying and selling bitcoins in the interest of their customers do not have to pay VAT because it refers to currency operations.

At the same time, however, they will have to pay bitcoin income and production taxes, with capital gain (or loss) as a result of exchange rate fluctuations considered as a tax base.

The document provides a brief description of bitcoin. According to Italian tax authorities, bitcoin is a special type of money – a “virtual” currency, “or, rather, cryptocurrency used as an alternative to the traditional legal tender issued by monetary authorities.”

The resolution states that, at the time of submission of yearly financial and accounting statements, legal entities having assets in bitcoins must evaluate them according to the exchange rate at the balance sheet date. Based on the value of cryptocurrency assets and its change compared to the previous year, companies will have to pay tax.

The document also suggests no tax for individuals on cryptocurrency purchase and sale transactions, if they are not carried out for speculative purposes.

Elena Platonova