On 10 September 2026, the Italian Revenue Agency published ruling No. 170/2026 addressing the tax treatment of income derived from digital financial instruments. The ruling establishes that the manager of the register for digital circulation (gestore del registro per la circolazione digitale) cannot be equated to a traditional financial intermediary and therefore cannot operate as a first‑level bank for the purposes of the special tax regime applicable to non‑resident investors. Consequently, the register manager is not authorized to collect self‑certifications from non‑resident investors, nor to transmit the required communications to the Exchange System (Sistema di Interscambio), nor to file the Model 118/Imp. This decision clarifies a significant gap in the regulatory framework for digital assets, confirming that the special withholding tax regime for non‑resident investors does not extend to instruments circulated via digital registers absent explicit legislative provision.
Key Takeaways
- No Intermediary Status for Digital Register Managers: The ruling draws a clear line between traditional intermediaries (banks, SIMs, fiduciary companies) and the newly created role of digital register managers. Without explicit legislative equivalence, digital register managers cannot perform the critical functions of tax withholding, certification collection, and reporting that are essential for the application of the special regime.
- Special Regime Inapplicable: Income from digital financial instruments held by non‑resident investors will not benefit from the reduced withholding tax rates or exemptions provided under the special regime unless the issuer or a qualified traditional intermediary steps in to fulfill the obligations. This may increase the tax burden on cross‑border digital asset investments and create compliance complexity for issuers.
- Legislative Action Needed: The decision underscores the need for Parliament to expressly extend the special regime to digital registers if policy intends to treat them on par with traditional intermediation. Until then, market participants must structure digital asset offerings with traditional intermediaries to secure favorable tax treatment for non‑resident holders.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
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