Bitcoin 2020 taxation: should cryptocurrencies and bitcoins be declared? Do I have to pay taxes on bitcoin capital gains?  

Bitcoin taxation for businesses

Let's start by saying that for companies Bitcoins must be considered as foreign currency. So although there is no specific need to declare how many you have, however, you must declare all the operations exactly as you do for those that take place in other currencies (Euro, Dollar, or others). And this applies to any cryptocurrency you use.

Therefore, from a fiscal point of view, for companies to use Bitcoin is exactly like using Euros or Dollars: from a fiscal, bureaucratic or administrative point of view, absolutely nothing changes.

So even if the company collects Bitcoin and chooses to keep them on its own wallet, if in the future it should sell them and derive a capital gain, it should pay us taxes.

In fact, the capital gains are taxed, but are paid only when they are recognized. So only when the Bitcoins were sold, or at the end of the balance sheet, could the capital gain be detected, and if there were on this (and only on this) there would be taxes to be paid.

Bitcoin taxation for individuals

The discourse instead changes for private citizens.

In fact, a private citizen who does not carry out financial activities aimed at obtaining capital gains does not have to pay any tax, even if he is able to achieve it in all respects. As for the previous speech, Bitcoin is considered as a foreign currency, therefore the same rules apply as for example for the Euro / Dollar exchange rate.

But, be careful! If, during the course of a year, for at least 7 consecutive days the Bitcoin possession threshold is exceeded for a value equal to 100 million of the old Lire (or approximately 51,000 Euro), then the Inland Revenue considers the activity of the deprives a speculative activity and therefore requests the payment of taxes on any capital gains.

However, the previous reasoning always applies: capital gains are recognized only at the time of the sale of Bitcoins (in the case of private individuals there is no balance sheet closure), therefore taxes must be paid only on capital gains, and only when you should sell by generating a capital gain (provided that the above possession threshold is exceeded).

We recall that the rate at which financial capital gains are taxed is 26%, and that these must be entered in the tax return in the appropriate spaces dedicated to capital gains deriving from financial activities.

Resolution no. 72 / E of 2016

These logics are the result of the interpretation of Ministerial Resolution no. 72 And of 02/09/2016. With this resolution the Revenue Agency declared that:

Bitcoin is an alternative currency to the traditional one
the purchase and sale of Bitcoin in exchange for Euros is to be considered a currency exchange transaction, therefore not subject to VAT
Bitcoin companies can make gains or losses from foreign exchange activities, and those gains or losses must be reported in the balance sheet
as an alternative to closing the financial statements, any gains or losses are calculated and recorded
in the case of private individuals, if there is no speculative purpose, no taxable income is recognized.
In this resolution (which is the response to the Revenue Agency to a company's own question), however, there are no references to the case in which a private individual carries out speculative activities.

But given that the resolution itself de facto treats Bitcoin like a currency, it is possible to apply the same regulations that apply to individuals who carry out speculative monetary activities. This previous regulation establishes that only the activities of private citizens who hold for at least 7 consecutive days in a year an amount in money for a value equal to or greater than 100 million old Lire (or approximately 51,000 Euros) can be considered as speculative activities, generating therefore taxable income. In this case, therefore, the capital gains must be recognized and declared. However, private citizens do not "close the balance sheet" at the end of the year, therefore capital gains can only be recognized in the event of the sale of Bitcoin.    

Do I have to pay taxes on bitcoins?

There is no real rule that defines the criteria to be followed regarding the taxation on bitcoins and cryptocurrencies, what we can do is follow the instructions given by the Revenue Agency itself following an appeal. In response to the latter, the AdE explicitly approaches resolution no.72 / E of 2016 to cryptocurrencies and bitcoins.

We also remind you that in the matter of anti-money laundering, Italy was the first among the member states to adopt the IV anti-money laundering directive and to introduce in our system the definition of "virtual currencies" and "service providers related to the use of virtual currency. "Through the legislative decree legislative decree 90/2017.

A decisive step forward that allows us to foresee future changes from a regulatory and fiscal point of view as regards taxation on holding and investments in cryptocurrencies.

Therefore in conclusion:

the Italian Revenue Agency treats Bitcoin like a coin
the same tax rules apply to companies that operate with Bitcoin that would apply if they operated with Euro
taxes are paid only on any capital gains
these for businesses are recognized at the balance sheet date, or at the time of the sale of Bitcoin
private citizens must pay taxes, always only on any capital gains, only if they exceed 7 consecutive days of detention of Bitcoin for a value greater than approximately 51 thousand Euros.
Ultimately, our advice is to turn to an accountant who knows the matter well and who can advise you on the right path to take in paying taxes on cryptocurrencies