How capital losses are handled between the declarative and administered regimes

A capital loss is simply a loss. It happens, for example, when you sell a crypto-asset at a lower price than the one you bought it for. Capital losses are useful because they allow you to reduce the taxes to be paid, by balancing out with gains (called capital gains). However, depending on the tax regime chosen, they work differently and cannot always be transferred from one regime to the other.

Under the administered regime

If you choose the administered regime on Young Platform, any losses you accumulate are automatically offset against future gains. This balancing happens both within the same year and over the following four years. Tax is calculated directly net of these losses, without you having to do anything or fill in any forms.

Remember, however, that this mechanism applies only to future gains: current losses do not allow you to recover or obtain a refund of taxes already paid on past transactions.

From declarative to managed: they do not transfer

If you accumulated losses when you were under the declarative regime (that is, when you managed your taxes independently in your tax return), you will not be able to transfer them into the administered regime. Consequently, we will not be able to use them to reduce the taxes calculated by us. Such losses remain tied to the declarative regime and you can only use them in your tax return to offset any separately declared gains.

Before switching to the administered regime, we therefore advise you to check how many capital losses you still have set aside and how you can use them.

From managed to declarative: they transfer

If in the future you decide to leave the administered regime, we will provide you with an official certification of unused losses (with an indication of the year in which they occurred) and the tax value of your crypto-assets. You will find all these documents in the Taxes & Reports section. In this way you can easily enter this data into your tax return, on your own or with the help of an accountant. How to leave the regime is explained in How to revoke your adherence to the administered regime.