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When to declare your current account in the 2024 tax return

Should the current account be declared in the tax return?

Declaring a current account in the tax return may seem like an obvious question with a straightforward answer, but it’s not always that simple.
While salaries and pensions (already taxed at source) or transfers from relatives and friends (which are tax-exempt) are typically credited to a current account, it is generally not necessary to include it in the tax return.
However, there are exceptions to this rule.

What many people may not know is that current accounts held abroad must be declared in the tax return by Italian residents.
This obligation serves two main purposes: to calculate any Ivafe payments and for tax monitoring purposes.

Where should the foreign current account be indicated in the tax return?

Until last year, it was necessary to fill out the RW section of the Redditi model to declare a foreign current account.
Starting from this year, taxpayers can fulfill this obligation by completing only the 730/2024 model with the new W section.

Both cases involve non-income sections that must be filled out even by those exempt from income tax.
In this scenario, simply filling out the RW section of the Redditi model and its cover will suffice.

When should current accounts be declared in the W section?

All individuals who have had deposits exceeding 15,000 euros in their foreign current accounts are obliged to indicate them in the W section of the 730/2024 model (unless the deposit amount is lower, in which case no declaration is required).
Reporting is also mandatory for lower amounts when the taxpayer must pay Ivafe, which applies to deposits exceeding 5,000 euros.

How to fill out the W section of the 730/2024 model

In the W section of the 730/2024 model, individuals must report the following for tax monitoring purposes:
– Foreign real estate investments
– Foreign financial activities
– Crypto assets

Additionally, although this section is primarily for tax monitoring, it also allows for the settlement of taxes related to the aforementioned investments (Ivafe, Ivie, and taxes on the value of crypto assets).

Consequences of not declaring a foreign current account

Failing to fill out the W section despite holding a foreign current account results in a formal violation, leading to the following penalties:
– Filing the RW section of the Redditi model within 90 days incurs a fixed penalty of 250 euros
– If the undeclared current account is located in a non-Black List country, the penalty ranges from 3% to 15% of the undeclared amount
– For accounts in Black List countries, the penalty varies between 6% and 30% of the undeclared amount
These penalties are applicable even to those exempt from income tax.

Author: Hermes A.I.

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