Tax Report FAQ for Italian Residents

Any data reported in the tax statement is strictly for informational purposes only.
It is not intended as a tax declaration or as a substitute for legal advice.
We strongly advise you to verify the tax statement with your tax advisor.
eToro does not provide tax advice and this page is for informational purposes only.

On this page, you will find information about the eToro Tax Report, which is a document generated based on your previous annual trading activity on the eToro platform and is structured in accordance with local tax guidelines.

  • Tax Year: 01.01–12.31
  • Reporting Currency: Euro (EUR)

Filing Date:

The general deadline is November 30th: submission must be made electronically

Under specific conditions, the paper format is acceptable: the deadline is June 30th

  • Reporting Languages:
    • IT
    • EN
  • Consumption Logic: LIFO, except for investment funds, where the weighted average method is required for determination of acquisition prices.

Taxable Basis

  • Income: Dividends, interest, other income and capital gains from investment funds
  • Capital Gains: Capital gains from any assets and fees / capital losses from investment funds
  • Wealth: The tax due (so called IVAFE) is calculated as follows:

For securities, based on the market value of the financial assets as of December 31st of each year or as of the last day of the holding period (except precious metals and cryptocurrencies, which are exempt but must still be reported for monitoring purposes)

For cash accounts, an annual fixed amount of 34,20 Euros is due for each account (pro rata temporis if the account is opened or closed during the reporting period) in case the total annual average balance is higher than 5.000,00 Euros.

External Data

  • Monthly average exchange rates published by the Bank of Italy (to be used for any conversion related to the IVAFE calculation): https://tassidicambio.bancaditalia.it/terzevalute-wf-ui-web/averageRates ;
  • Prices needed for the initial and final valuations of all securities in Quadro RW;
  • Classification of the issuer countries (to identify the correct tax regime depending on if it’s part of the European Union, the European Economic Area, the Italian White List 1996, and if it is a country with a more favourable tax regime, previously called the Italian Black List)

Tax Forms

  • The following sections of the official tax form “Modello Redditi Persone Fisiche” must be completed:
    • Quadro CE: Foreign withholding tax paid
    • Quadro RL: Incomes taxed at individual tax rate

eToro Tax Report

Each line in the table displayed in the Quadro RL section corresponds to a single income, and each group of incomes with the same income type (Tipo reddito – 1) has its own subtotal.

Official Form

The official tax form can be completed based on the subtotals per income type (in the example above: one line for type 4 and one line for type 5).

  • Quadro RM: Incomes taxed at substitute tax rate

eToro Tax Report

In the report, we display two tables in the Quadro RM section: one for the incomes reported in RM12 and one for RM13. In each table, there is one line for each single income.

In RM12, each group of incomes with the same income type (Tipo – 1), country code (Codice Stato estero – 2) and tax rate (Aliquota – 4) has its own subtotal, which is the basis of completing the tax form.

In RM13, only the total is needed to fill out the tax form.

Official Form

The official tax form can be completed as follows:

In the RM12 section, based on the subtotals shown in the table. Therefore, in the example above, the taxpayer must enter 4 lines: one line for income type A – Country 009 – rate 26, one line for income type B – Country 008 – rate 26, one line for income type B – Country 067 – rate 26 and one line for income type H – Country 071 – rate 26.

In the RM13 section, based on the total shown in the table. Therefore, in the example above, the taxpayer must enter one line for RM13.

  • Quadro RT: Capital gains

eToro Tax Report

The table in the Quadro RT section of the report corresponds exactly to the lines of the tax form.

Official Form

NOTE: 

For reconciliation purposes, in the report, you can also find two summary tables with the breakdown of the amounts by instrument type:

  • Quadro RW: Wealth Statement

eToro Tax Report

In the report, we display two tables for the Quadro RW section: one for securities and one for account-like instruments (cash accounts and money markets).

For securities, each group of instruments with the same asset type (Codice individuaz. bene – 3) has its own subtotal, which is the basis of completing the tax form.

The values shown in the columns with a number are those needed to fill out the tax form.

Official Form

The official tax form can be completed as follows:

For securities, one box per asset type (Codice individuaz. Bene – 3) based on the subtotals shown in the table. Therefore, in the example above, the taxpayer must enter 3 boxes: one box for asset type 2, one box for asset type 3 and one box for asset type 4).

For cash accounts, one box per each single cash account. Therefore, in the example above, the taxpayer must enter 3 boxes, one for each cash account.

 

 

Any data reported in the tax statement is strictly for informational purposes only.

It is not intended as a tax declaration or as a substitute for legal advice.

We strongly advise you to verify the tax statement with your tax advisor.

eToro does not provide tax advice and this page is for informational purposes only.