TAX TREATMENT OF PURE PHYSICAL INVESTMENT GOLD

trattamento fiscale: Oro fisico da investimento

TAXATION OF PURE PHYSICAL INVESTMENT GOLD

The investment in pure physical gold is today one of the most advantageous investments available on the market.

In fact, the purchase of pure physical gold is VAT exempt, which essentially translates into an absence of taxes during the purchase, possession, and resale phases.

DIRECT TAXES

The sale of pure physical gold by a private individual can lead to taxable income when there’s a capital gain.

These gains are determined by the difference between the amount received at the time of sale and the cost or the relative purchase value of the sold gold.

For sales of precious metals, in the absence of the original purchase cost documentation, capital gains are determined to be equal to 25% of the sale amount.

As of today’s publication date on the site of these notes, a substitute tax of 26% is due on any capital gain realized, which is declared in the tax return for the year in which the sale amount is collected.

On the other hand, if there were to be capital losses, no taxes would be due; in fact, other taxes would also be reduced.

Capital gains from the sale of gold are taxed after deducting capital losses of the same category.

WHEN PURCHASE COST DOCUMENTATION IS PRESENT:

Documented purchase cost: €uro 35.000

Sale amount: €uro 50.000

Taxable capital gain = €uro 15,000

Purchase cost – Sale amount

Tax due: 26% of €uro 3.900

Taxable capital gain

WHEN PURCHASE COST DOCUMENTATION IS ABSENT:

Documented purchase cost €uro n.d

Sale amount €uro 50.000

Taxable capital gain: 25% of €uro 12.500

Sale amount

Tax due: 26% of €uro 3.250

Taxable capital gain

INDIRECT TAXES - Value Added Tax (VAT)

Sales of pure physical investment gold are exempt from value-added tax (VAT).

By pure physical investment gold, we mean:

Gold in the form of bars or plates of a weight accepted by the gold market, greater than 1 gram with a purity equal to or greater than 995/1000, whether represented by securities or not. Gold coins with a purity equal to or greater than 900/1000, minted after 1800, which are or have been legal tender in their country of origin, sold at a price that does not exceed 80% of the open market value of the gold contained within them.

TAXES ON INHERITANCES AND DONATIONS

Recently, the national tax system reintroduced the inheritance and donation taxes that had been previously abolished, with some changes compared to the pre-existing legislation.

With the reintroduction of the inheritance tax, the obligation to file an inheritance declaration came back into effect.

Given this premise, the presence of pure physical investment gold in the estate assets of the deceased owner of said gold triggers the obligation for the heirs to account for the corresponding value of the pure physical investment gold received as an inheritance.

VALUE THAT CONTRIBUTES TO THE DETERMINATION OF THE INHERITANCE TAX ACCORDING TO LEGAL RATES: Spouse and direct descendants: Exempt up to 1 million euros for each beneficiary, then beyond this amount, it’s taxed at 4%. Brothers and sisters: Exempt up to 100,000 euros for each beneficiary, then beyond this value, it’s taxed at 6%. Relatives and in-laws: 6% Other individuals: 8%

In the event of a subsequent sale of the gold by the heir, the taxable capital gain at a rate of 26% must be determined by the difference between the gold’s selling price and the value attributed to the gold in the inheritance declaration.