The Revenue Agency has recently published the Resolution No. 60/E of December 9, 2024. This resolution provides clarifications in terms of taxation of capital gains from the sale of foreign incomes. More specifically, it makes reference to currency transfers among bank accounts of the same individual.
Applicable Legislation
The reference legislation is Article 67, paragraph 1, letter c-ter) of the Consolidated Income Tax Act (T.U.I.R.) which regulates taxation of capital gains from the sales of foreign incomes. Thus, such capital gains are considered an “other incomes” category and are taxable only if certain conditions are met.
According to the legislation, foreign currency withdrawal from a bank account can be integrated to a “transfer for consideration“. Thank to this, such capital gain can be significant for tax purposes. However, in order to avoid non-significant taxations, the legislator has established that capital gains are taxable only if the total foreign currency balance in accounts and deposits exceeds €51,645.69 for at least seven consecutive working days during the tax period.
The specific case
The Resolution analyzes a specific case in which a taxpayer living in Italy transfers foreign currency between his two bank accounts, using the same currency. The issue focuses on whether such transfers can be considered fiscally relevant operations.
Clarification of the Italian Revenue Agency
The Italian Revenue Agency has declared that, in such situations, this does not constitute a withdrawal pursuant to Article 67, paragraph 1, letter c-ter) of the Italian Income Tax Code (T.U.I.R.). In particular, these are simple internal transfers, with no investment purpose. Indeed, they do not involve the sale or conversion of foreign currency.”. As a result, such transfers are not subject to taxation.
This clarification serves as an important reference for taxpayers and professionals in the tax sector. By reiterating the legislator’s intention to tax only capital gains derived from investment-related transactions, the Resolution prevents situations with no real economic significance from being brought within the scope of taxation.
The Agency has underlined the enforceability of these principles to cryptocurrencies transfers. Until specific regulations are introduced, crypocurrencies are fiscally treated as foreign currencies. As a result, transfers between wallets belonging to the same taxpayer does not constituite a taxable event.
Conclusions
Resolution No. 60/E aims to clarify the tax regime for foreign currency transactions, reducing the risk of inconsistent interpretations. Taxpayers with foreign currency accounts or in the cryptocurrency sector must understand the impact of these provisions to ensure compliance.”.
