In the United States, it is mandatory to report cryptocurrency transactions worth more than $ 10,000 to the Revenue Agency. On Thursday, the U.S. Treasury announced the use of new anti-fraud measures for digital currencies: reporting significant value transactions to the Inland Revenue Service (IRS) will be mandatory. “Cryptocurrencies pose a serious problem because they generally facilitate illegal activities, including tax evasion,” the U.S. Treasury said in a statement. The statement of transactions will be identical to what is already happening for bank interest and dividends in excess of $ 10 thousand linked to traditional financial institutions. The plan is part of Biden Management’s new plan to raise the agency’s budget to $ 80 billion and increase revenue collection. According to Treasury estimates, unaccounted tax revenue in the United States in 2019 will be nearly $ 600 billion. Federal Reserve Chairman Jerome Powell also commented on Bitcoin and friends on Thursday. According to Powell, digital currencies “pose potential risks to those users and the financial system” and require further regulation.
In Italy, cryptocurrencies are reported in the 3rd column of the RW1 series with 14 codes («Other foreign financial assets and virtual currencies). According to Article 4, the legal order n. 167/190, it is necessary to declare foreign investments and foreign financial transactions that can earn taxable income in Italy, including foreign currencies. The revenue company has compared cryptocurrencies with foreign currencies, so there is an obligation to declare. However, this is not the case with ‘virtual currency service providers’. Holders of cryptocurrencies for a national round should not declare anything to taxpayers. On the other hand, any capital gains must be declared if the average balance of holding portfolios exceeds the value of 51 51,645.69 for at least seven days.
In Europe, by the end of 2021, the text of the new order on data transfer between tax administrations (Doc 8) will come, which will enable the introduction of EU data transfer in cryptocurrencies. Digital operations and related intermediaries are not completely covered by the rules currently in place, so European tax authorities cannot exchange this information. Like traditional financial instruments, the income of crypto assets may also be subject to taxation.
© All rights reserved