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Strategic Partnership Announced to Support Italian Clients in Tax Regularization of Crypto-Assets.

Partnership to support Italian clients to navigate crypto tax regularization

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Published in: One Trading · 5 min read
Partnership to support Italian clients to navigate crypto tax regularization

London, November 10, 2023 – Lexia, a leading Italian law firm, and One Trading, a global crypto-asset trading platform, are pleased to announce a strategic partnership to provide support to One Trading’s Italian clients seeking to apply for the tax regularization of crypto-assets.

The Italian government introduced a Regularization Program in the 2023 Budget Law specifically designed for Italian taxpayers who have encountered two primary situations:

  • Incomplete Disclosure of Cryptocurrencies: Taxpayers who have failed to complete the disclosure section (“Form RW”) of their annual Income Tax Return regarding cryptocurrencies, including those acquired through staking activities, up to December 31, 2021.
  • Undeclared Incomes from Crypto Activities: Taxpayers who have not declared incomes derived from crypto activities, encompassing cryptocurrencies, earned up to December 31, 2021.

The Regularization Program offers two distinct paths for taxpayers to rectify their tax position:

  1. Cryptocurrencies Not Fully Declared in Form RW: Taxpayers in this category can regularize their status by submitting a Regularization Application. This application should detail the value of cryptocurrencies held during each tax period where disclosure was omitted. Additionally, taxpayers are required to pay a reduced penalty of 0.5 percent of the value of their cryptocurrencies held at the end of each relevant tax period and/or at the date of their sale. This payment exempts the taxpayer from potentially higher tax penalties, which can range from 3% to 15% per year.
  2. Undeclared Incomes from Crypto Activities: Taxpayers who have wholly or partly failed to declare incomes from crypto activities, including cryptocurrencies, can normalize their tax position by submitting the Regularization Application. This application should include the value of crypto assets held during each tax period for which income disclosure was omitted. These taxpayers are obligated to pay a substitute tax of 3.5 percent of the value of crypto assets held at the end of each relevant tax period and/or at the conclusion of the holding period associated with the unreported incomes.

To apply for tax regularization of crypto-assets, Italian taxpayers must submit a Regularization Application to the Italian Tax Authorities by November 30, 2023. The application must include detailed information about the taxpayer’s crypto assets, including the type of asset, the date of acquisition, the value of the asset at the end of each relevant tax period, and any income derived from crypto activities.

Lexia and One Trading encourage Italian taxpayers who have failed to declare their crypto assets or incomes from crypto activities to take advantage of the Regularization Program. By participating in the program, taxpayers can avoid costly penalties and interest charges, and achieve peace of mind knowing that their tax affairs are in order.

For more information about the Regularization Program and how to apply, please contact Lexia or One Trading.

Commenting on the partnership, Francesco Dagnino and Alessandro Dagnino, Managing Director of Lexia said: “Through this strategic partnership, Lexia and One Trading will work together to provide One Trading’s Italian clients with comprehensive support throughout the tax regularization process. Lexia’s team of experienced lawyers will guide clients in completing the necessary paperwork and filing their Regularization Applications. One Trading will provide its clients with access to its proprietary data and analytics platform to help them accurately calculate the value of their crypto assets and any associated taxable income.”.

Commenting on the partnership, Francesca Galletta, Managing Director of One Trading Markets S.r.l. said, “We have been collaborating with Lexia since the inception of One Trading. Lexia is our primary external counsel for corporate and regulatory matters in Italy. This partnership with Lexia is created with the best interest of our clients in mind, to assist them with navigating the deep weeds of crypto tax rules.”.

About One Trading

One Trading is a leading European digital asset trading platform with a VASP registration in Italy registered with Organismo Agenti e Mediatori (OAM) since 2022. The One Trading platform has various offerings: Exchange, Instant Trade, and an OTC desk. The Exchange is where registered customers can access one of the fastest trading venues in the world, along with a transparent order book with deep liquidity, charting tools for technical analysis, and advanced order types (e.g., stop loss, trailing stop loss, take profit). The team behind One Trading has strong ex-TradFi expertise and is focused on providing an unparalleled product experience.

Instant Trade offers a simplified UI for trading a wide range of fiat, stablecoin, and altcoin pairs at 0% additional commission. One Trading retrieves the best prices for customers by plugging into a number of major liquidity providers with access to deep liquidity. These relationships have been established through the over-the-counter (OTC) offering, and are typically only reserved for HNWs or institutional customers. Through Instant Trade, all trader types can access this unique trading mechanism through a simple UI.

The OTC desk offers a high-touch trading team to work with clients, typically high-net-worth individuals (HNWs) or institutional partners to facilitate trades in any size and digital asset, with access to deep pools of liquidity, rapid settlement, and large asset coverage.

About Lexia Avvocati

Lexia is a multi-practice law and tax firm with offices in Milan, Rome, and Palermo. It is the result of the professional experiences of the Managing Partners Alessandro Dagnino, Francesco Dagnino, and Vincenzo Sanasi D’Arpe, involving over seventy specialized professionals in the areas of corporate law, financial markets law, tax law, and extraordinary administrations of large companies in crisis. The firm provides legal assistance and consultation at the highest levels and has a track record of creative and innovative solutions that have made their mark in the respective sectors.

Lexia’s distinctive feature is its vertical focus on cutting-edge sectors such as fintech, open banking, DeFi, blockchain, crypto-assets, and alternative investments. Lexia’s Financial Services team, in fact, works with both traditional financial institutions and VASPs and fintech companies, covering all topics concerning financial services regulation.

Additionally, Lexia is the founding member of the Fintech Legal Network, the first European network of independent law firms specializing in financial services and Fintech, combining the expertise of attorneys from over 12 European jurisdictions.