Cryptolicense in Italy: Compliance Made Clear

Cryptolicense holders are required to send electronically to the OAM data on transactions carried out in Italy to comply with the local AML requirements.

The transmission must be made quarterly, no later than the 15th day of the month following the reporting quarter. In particular, such data must be transmitted:

1. Customer identification data (name and surname, place and date of birth, place of residence, tax code/VAT number, if assigned, and identity document data)

2. Summary data on total transactions in Italy for each individual customer:

• countervalue in euros, as of the last day of the reference quarter, of the total balance of legal currencies and virtual currencies referable to each customer
• number and total euro countervalue, as of the last day of the relevant quarter, of legal-to-virtual and virtual-to-legal currency conversion transactions referable to each customer
• number of conversion transactions between virtual currencies referable to each customer
• number of outgoing and incoming virtual currency transfer transactions to/from the service provider related to the use of virtual currency referable to each customer
• number and countervalue in euros, as of the last day of the reference quarter, of the amount of outgoing and incoming legal tender transfer transactions from/to the service provider related to the use of virtual currency, referable to each client and broken down by cash transfers and traceable instruments

If you want to register as an natural person, you must have Italian citizenship or citizenship of a European Union State or of a different State according to the provisions of the Consolidated Immigration Act, and domicile in Italy.

If you want to register as a subject other than natural persons, you must have a registered and administrative office or, for EU persons, permanent establishment in the territory of Italy.

Italian VASPs are subject to local AML/CFT laws of Italy. Therefore, before VASPs can begin their operations, they need to put in place all the mechanisms, procedures and controls necessary to ensure compliance with these regulations.

Registration fees as follows (payment must be done no later than 5 days after sending the application for registration):

• for natural persons - €500
• for subjects other than natural persons - €8,300

Annual fees comprise the following:

1) fixed fee:

• natural persons - €200 (4 quarterly installments of €50 each)
• subjects other than natural persons - €1,500 (4 quarterly installments of €375 each)

2) variable fee:

• for natural persons - €0.08 per customer (record)
• for subjects other than natural persons €0.08 per customer (record)

In the case of transmissions with a number of customers from 1 up to 500, a deductible of €40 is applied for the variable portion of the corresponding reference quarter.

Corporate Income Tax (CIT) - resident entities are subject to corporate tax (IRES) of 24% on its worldwide income; they are also subject to tax on regional production (IRAP), which is generally levied at a prime rate of 3.9%.

Value Added Tax (VAT) - in Italy, VAT is known as Imposta sul Valore Aggiunto (IVA). The standard rate of VAT in Italy is 22%, but there are also two reduced rates of 10% and 5%, as well as a super reduced rate of 4%. The threshold for VAT registration for resident businesses in Italy is €85,000. Therefore, any business exceeding this limit must register for VAT.

Capital Gains Tax (CGT) - a capital gain from virtual currencies is taxable in Italy at a rate of 26% if it amounts to or is greater than €2,000. These gains are considered "miscellaneous income" for tax purposes. This kind of taxation applies to profits derived from:

• Exchange of virtual currencies into euros
• Exchange of NFT into another virtual currency
• Purchasing goods or services with virtual currency

Personal Income Tax (PIT):

• €0 - €28,000 - 23%
• €28,000 - €50,000 - 35%
• above €50,000 - 43%