Legislation and taxation italianarelativa to the physical gold investment

Trade of physical gold investment.

 

The possession and the sale and purchase of physical gold investment is regulated by the law n. 7 January 2000 in the implementation of the directive 98/80/EC of 12 October 1998.(https://www.parlamento.it/parlam/leggi/00007l.htm)

The law abolishes the monopoly on the sale of gold by the Italian Exchange Office and helps residents in Italy, to negotiate and to hold tools in physical gold investment that to be defined as such, must comply with the following characteristics:

• Gold, in the form of ingots or wafers of a weight of more than 1 gram, and with a purity equal to or greater than 995 thousandths, whether or not represented by securities;
• Gold coins of a purity equal to or greater than 900 thousandths and minted after 1800, which have been legal tender in the Country of origin, normally sold at a price that does not exceed 80 percent of the open market value of the gold contained in them. These are included in the list drawn up by the Commission of the european Communities and the annually published in the Official Journal of the european Communities, C series, as well as the coins having the same characteristics, even if not included in the abovementioned list; with the decree of the Minister of the treasury, budget and economic planning are established by the mode of transmission to the Commission of the european Communities of the information about the currencies traded in the Italian State that meet the above criteria. (Law 7/2000).

To our web page “The coins of Investment”you can find and negotiate all types of coins from the investment more widespread, and cash.

The sale and purchase of physical gold investment covered in the Italian legislation with the law no. 7/2000 is not subject, at the time of purchase, for the tax and is exempt from VAT (“the Transactions which are exempt from the tax” – No. 10, paragraph 1, n.11 of PRESIDENTIAL decree 633/1972).

The exemption from Vat provided for in the legislation of gold if savers and investors buy via “Operators Professional Gold” (as Numismatica Ranieri Srl) authorized and registered in a special Register redattoe controllatoda the Bank Of Italy.The list deglioperatori professional gold is available on the website of the Bank of Italy

The requirements for obtaining permission are:

• To be a corporation in the form of S. r.L, or S. p.To
  Have fully paid share capital.
  • Members must be of sufficiently good repute necessary to conduct the business.

We recommend not to buy gold for investment by individuals or legal persons not registered

 

 

Tax provisions in relation to the sale and possession of gold investment.

 

Not being considered as a revenue, given the absence of the exercise of the business activity, and not being represented by securities or certificates managed in a tax regime administered or managed by financial Intermediaries, the statistical burden falls solely on the taxpayer.

There is no tax on the possession of physical gold investment and are not required for private declaration as to the quantity in the possession or management.Professional traders in the gold, however, are kept declared to the FIU (Financial intelligence Unit for the uk) by the end of the month following the operation, all the trades of gold with a value equal to or greater than 12,500€.

Once you have purchased the gold from a dealer, lawfully authorized by the Italian foreign Exchange Office, this is not subject to any kind of taxation until it decides to sell the purchased goods, as shown by the article 3 of the law 7/2000.

Taxation on gold investment: the role of the invoice from 1 January 2024.

The sale of gold by, any person can result in the achievement of taxable income where you experience a capital gain (capital gain”) pursuant to (c-ter), article 67, the consolidated income tax act.

The gains in question stem from the positive difference between the consideration received at the time of the sale and the cost or value of the purchase of the gold sold.The impostaè due in the event that the private rivendail well getting a capital gain: if it is a capital loss, there is no taxation.

A simple example, shown below, allows you to better understand the taxation of the capital gains generated by physical gold investment.

A GENERAL CRITERION PRIOR TO 1 JANUARY 2024

Policy with proven documentation of the cost of buying
(A) the Cost of the purchase is documented € 35.000
(B) Proceeds from the sale of € 50,000
C) taxable capital Gain = (B)-(A) for € 15,000

Tax due 26% C) € 3.900

Policy in the absence of documentation of the cost of buying
(A) the Cost of the purchase is documented n.d.
(B) Proceeds from the sale of € 50,000
C) taxable capital Gain 26% B) € 12.500

Tax due 26% C) € 3.250

Update the law of the Balance sheet of 1 January 2024

 

As mentioned in the previous paragraph has been amended with the last budget law submitted on January 1, 2024 (LAW 30 December 2023, n. 213 Refer to Article 92 a-c).

With the entry into force of the measure, in fact, for all sales of investment gold of which do not have documentation stating the value of the original purchase is provided for a tax of 26% on the total proceeds.

 

A GENERAL CRITERION, TODAY'S POST JANUARY 1, 2024

Policy with proven documentation of the cost of buying
(A) the Cost of the purchase is documented € 35.000
(B) Proceeds from the sale of € 50,000
C) taxable capital Gain : (B) (- A) = € 15.000

Tax due 26% C): € 3.900

Policy in the absence of documentation of the cost of buying
(A) the Cost of the purchase is documented n.d.
(B) Proceeds from the sale of € 50,000
C) taxable capital Gain 26% B) for € 13,000

Tax due 26% B) for € 13,000

Nothing changes, then, in regard to the sales of investment gold where you have a purchase invoice in his own name, which will continue to be taxed only on the actual capital gain (the difference between the sale price and purchase price) in the percentage of 26%.

 

Compensation of losses with capital gains

 

The legislation provides that, in case of occurrence of a capital loss (Capital Loss), i.e. a loss arising from the sale of gold at a price lower than the purchase, this will be offset by any capital gains realized during the tax period.In case you don't realize capital gains, in the period of 4 years from the attainment of the losses to be offset, the residue will be lost (part No. 68, paragraph 5 of the consolidated income tax act).

The imponibiliderivanti from the sale of physical gold investment are to be declared by entering the importirelativi the possible gain in the framework RT of section II of the model called the “Income Individuals“. In the event that your investment in gold was made abroad, it is necessary to specify it in the framework of the RW of the same form.

 

Purchase free of charge

 

In the case of purchase, free of charge, the legislation of gold requires that the purchase value to be considered is the one declared in this time and will match the value of the market in force at that time. Also in this case, the private, not falling between the subjects indicated by the Article 7 of PRESIDENTIAL decree 605/1973, shall not make any report to Tax authorities.
As stated in Article 2, paragraphs 24 to 54, D. L, October 3, 2006 no.262 have been returned to the estate tax and the obligation to submit a declaration of succession.
The presence of gold in the active hereditary triggers the obligation of the heirs, in the compile-time declaration of the succession, to take account of the value of the gold received.
The value thus calculated according to the regulations in gold will contribute to the formation of the inheritance tax, which will be determined according to the rates of tax on gifts and inheritance tax.

• The spouse and relatives in a straight line – the Rate of 4% for amounts exceeding 1 million for each beneficiary
• Brothers and sisters – Rate to 6% for an amount superior to 100.000 € for each beneficiary;
• Relatives and kin – No tax-free Rate 6%
• Different subjects – No deductible and the tax Rate to 8%

The value of gold is indicated in the declaration of succession assumes significance as the “fiscal costs of purchase of the heir (or “tax value of load”), for the purposes of the application of the tax on the capital gain at the end of the latter. In other words, in the case of a subsequent sale of gold by the heir, the capital gain (capital gain) would be taxable at the rate of 26% should be determined by the difference between the sale proceeds of the gold and the value attributed to gold for a declaration of succession.

No. 4 – Declarations and requirements provided for by law

 

Transactions equal to or greater than 12,500 €
For operations related to transactions in investment gold amount equal to or greater than 12,500 € there is the obligation of the statement to Drive Financial news (FIU).
The obligation is triggered in the case of:
1. Supply from abroad, and abroad;
2. Sales in the national territory;
3. Operations in physical gold investment, free of charge, Trusts, successions, donations)
4. Supply “on foreign countries” of gold.

In the case of failure to comply with the requirement will take a penalty, which may vary from 10% to 40% of the value traded. (art. 4 of the law 17.01.2000, n. 7).
The communication must be made by the end of next month in which the transaction took place.
In the case of operations referred to in points 1) and (4) the notice must be given before the operation, and the copy of such communication, and the document of successful transmission to the FIU must accompany the gold.

 

 

N. B The information herein shall not be deemed in any way exhaustive. For all the technical details you need to contact an accountant or a tax consultant.
For more information and for a free consultation in the field of investment in gold we are available to our contacts.