Tax monitoring: RW generates overview of foreign accounts and property

For real estate acquired by inheritance or gift, the value is determined according to the value declared in the inheritance tax return, registered document or other documents provided for by foreign laws for similar purposes. In the absence of such documents, the value established on the basis of the purchase or construction costs incurred by the testator or donor, as indicated in the relevant documentation, shall be accepted. Financial products are valued at quoted prices as of December 31 or at the end of the holding period. For securities not traded on organized markets, the par value or, if not available, the redemption value should be used, even if it has been officially revised.

I live and work in Italy, but I have an international credit card that is widely used also in Italy and is linked to a bank account in Germany that I own. I always keep a small amount of money in my account, so the balance never exceeds 3 thousand euros. Do I still need to list this account in the RW section? Are there any exceptions to the tax control?

The obligation to indicate in the tax return (section RW) provided for by Decree 167/1990 does not apply to financial and property transactions entrusted for management or administration by resident intermediaries, as well as to contracts concluded through their participation, if the financial flows and income derived from these transactions and contracts have been subject to a deduction or tax substitute by the intermediaries themselves.

This applies, for example, to property held abroad but managed under a power of attorney by an Italian resident, as well as to financial products held abroad but managed by Italian banks and other financial intermediaries as tax agents.

In addition, the obligation to indicate in the tax return does not apply to foreign bank deposits and current accounts whose total value has never exceeded €15,000 (even for a single day) during the tax period. However, please note that there remains the obligation to complete the RW section if Iwade is due: this is a tax that is levied on accounts and savings books and amounts to a fixed amount of €34.20, in proportion to the share and the holding period, only if the average-salary value of the account/book exceeds €5,000.

To answer the reader's question, if the current account has always had a (daily) balance of less than €15,000 and the average net book value over the holding period (usually a year) is less than €5,000 - as suggested in the question - it is not necessary to specify an account in Germany under RW.

I am a salaried employee, living inMilan, but I have a property in Spain which I use for vacation. I already listed it under RW for the tax year in which the property purchase was made. Do I need to continue to indicate it every year in the RW section, given that I do not need to submit a tax return as I only have one Unica Certificate?

The obligation to indicate it on the tax return as stipulated in Decree 167/1990 does not apply to overseas properties if there is no change during the tax period, except for the payment of IVIE. Thus, in the case of our reader, unless and until now there has been no change (as may be the case, for example, with interest ownership), there is no obligation to complete the RW section. Therefore, in his particular case, the taxpayer may not file a tax return.