Taxation on non-euro currencies

Italian law mandates declaration and tax obligations on a taxpayer if they maintain a total liquidity balance in non-euro currencies with intermediaries (including liquidity held through a fiduciary company) that surpasses 51,645.69 euros for at least 7 continuous working days.

In case this threshold is exceeded, the fiduciary company is required to notify the Client that the limit has been surpassed and to explicitly indicate this in its “form 770” tax return.

In the event of surpassing the threshold, the taxpayer is required to report on their tax return any capital gains realized as a result of currency transactions. These capital gains are calculated according to criteria stipulated by the law.

It’s important to note that, by law, if the threshold is exceeded, the fiduciary company cannot, by law, act as a withholding agent.

Any recognized capital gains are subject to a separate taxation of 26%.

Unione Fiduciaria provides effective assistance to Clients who have exceeded the threshold of holdings in currencies other than the euro, by offering essential data and information to fulfill the declaration and tax obligations applicable in such cases.

Through its assistance service, Unione Fiduciaria:

• calculates capital gains/losses on foreign currency transactions
• provides all the necessary data required by law for inclusion in the Client’s tax return following the surpassing of the threshold.