Understanding the annual Italian Stamp Duty withholding on your Kraken account
A Stamp Duty is an indirect tax, meaning it is not on income tax, and historically was associated with written legal documents including cheques, receipts, marriage licenses, military commissions, and real estate transactions.
Historically, the legal documents included a physical stamp identifying the stamp tax had been paid. In the modern version there is no longer a physical stamp.
Yes, the Stamp Duty in Italy, known as Imposta di Bollo, applies to a wide range of legal documents, financial transactions and certain government-issued certificates.
The Italian Stamp Duty, under Presidential Decree 642/1972 had previously only applied to traditional financial instruments; however, this was amended by Budget Law 197/2022 which extended the Stamp Duty to cryptoassets, the details of which are included in Circular Number 30/E of the Revenue Agency.
Payward Europe Solutions Limited, Italian Branch (the Kraken entity providing your services in Italy as a licensed Virtual Asset Service Provider), must withhold an annual 0.20% stamp duty in EUR based on the value of your crypto assets, including stablecoins, as of December 31, 2024.
Before December 31, 2024, please review your account to ensure you have enough EUR to cover the 0.20% stamp duty. For example, if the total value of your crypto assets is €10,000, you should hold at least €20 in EUR.
If your EUR balance is insufficient to cover the Stamp Duty, we will automatically convert some of your other assets to meet the required amount. The conversion order is as follows:
- 1
Other fiat currencies (e.g., USD, GBP)
- 2
Stablecoins (e.g., EUR stablecoins first, then USD stablecoins, etc.)
- 3
Other crypto assets
We have ordered the assets to be converted to minimize any further tax consequences to you because the sale of assets to EUR may have tax implications to you similar to normal trades. Kraken does not charge any additional fees for performing these conversions or for paying the stamp duty on your behalf.
- 1
Determining the Fair Market Value (“FMV”) (December 31, 2024). At approximately 1:00 a.m. CET on December 31, 2024, we will calculate the FMV of your crypto assets, including stablecoins, in EUR.
- 2
Calculating the stamp duty. We will take the FMV and apply the 0.20% stamp duty rate to determine the “Stamp Duty Amount” owed. For example, if the total FMV is €10,000, then the Stamp Duty Amount owed would be €20.
For individual accounts, there is no maximum cap.
For company-owned accounts, the maximum stamp duty is capped at €14,000.
- 3
Withholding the stamp duty. After calculating the amount owed, we will place a temporary hold on your account from December 31, 2024, until January 3, 2025 in the amount of the Stamp Duty. During this time the amounts on hold to pay the Stamp Duty will be unavailable for withdrawal. Once we have transferred the Stamp Duty Amount from your account, we will remove the hold from your account. The transferred amounts, if needed, will be converted to EUR and remitted to the Italian Tax Authority.
In late January 2025, we will provide a statement detailing:
- •
The FMV of your crypto assets as of December 31, 2024.
- •
The total stamp duty amount withheld.
- •
Any applicable conversion rates used.
This statement will serve as documentation of the tax withheld and paid on your behalf, you will be notified once the statement is available.
Frequently asked questions
About the Stamp Tax
All of our clients, individuals and entities who are identified as Italian residents.
Please contact our support team with the information and documents concerning your current residence address.
Yes, the other exchanges and providers are withholding the Stamp Duty as legally required.
The Stamp Duty is due annually based on the value of cryptocurrencies held as of December 31st, 2025
About the calculation and the withholding
If you are identified as subject to the Italian Stamp Duty, then as your Virtual Asset Service Provider (“VASP”) in Italy we are required to withhold and deposit these amounts, as would any Italian VASP. Additionally, if you withdraw the cryptocurrency, you will still be required to self-assess the stamp duty on your holdings.
The rate is .2%, (.002), or €2 per each €1000 balance.
For individuals, there is no maximum cap. For company-owned accounts, the maximum stamp duty is capped at €14,000, that means amounts over 7,000,000EUR equivalent will not be subject to the stamp duty.
If there is a discrepancy with the calculation please contact our Support team.
Paying the Stamp Duty
Yes, you must do so before December 31st and leave the amount in EUR. We will use the EUR balance in your account to pay the Stamp Duty.
Yes, and please transfer the amounts before January 3rd, 2025.
Concerning the locking funds in the amount of the stamp tax
No, you will be able to trade as normal
No, only an amount equal to the Stamp Duty owed will be placed on hold, all other amounts are available for withdrawal.
The amounts on hold will be displayed as “Locked funds” and will be unavailable for trading or withdrawal.
Once the Stamp Duty Amount has been transferred from your account any related holds will be lifted.
Supporting documents
A statement will be provided to you in late January detailing the Fair Market Value of your account as of December 31st 2024, the computation of the Stamp Tax, the assets used to pay the Stamp Tax and any related conversion rates. You will be notified once the statement is available.
Need more help? If you have additional questions or concerns, please contact our Support team.