One less headache. Spanish taxpayers are not obliged to include their cryptocurrencies in the Model 720 declaration.
Declaring cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. holdings in Spain is not an easy task, and many cryptocurrency users know it. Undoubtedly, the extension of tax regulations to cover the new asset class has not helped to ease the task. More recently, a controversial tax liability relating to assets held abroad had raised doubts among taxpayers.
The good news for many is that the Spanish Ministry of Finance has clarified this week that holders of digital digital technologies are these electronic tools that have the ability to generate, store or even process data. assets are not required to include their holdings in the Informative Declaration of Assets Abroad. In other words, Spaniards will not have to include their cryptos in the controversial Model 720, which refers to funds held abroad. At least for now.
The Spanish Tax Agency published a aviso confirming that citizens have no duty to report their cryptocurrency holdings for the 2021 financial year. “ Virtual currencies are not reported in the 720 model. The information return on virtual currencies located abroad is not required for the financial year 2021. “ the agency said.
Model 720 does not include cryptocurrencies, for now.
The news portal The Economist picked up the information, noting that there is still no regulation for cryptocurrencies in this matter. On this matter, the media consulted the financial advisor and partner at Gibernau Esaú Alarcón, who explained:
There is no [cryptoassets] to declare. There is no information to declare. They are not securities included, nor is there data on cryptocurrencies in the securities boxes of Model 720. There is no reasonable exegesis that would allow it to be understood that cryptocurrencies are declared in this Model.
Last year, the Ministry of Finance had advanced that it was preparing to expand oversight over cryptocurrencies. In particular, it said it would force taxpayers to include transactions with such assets in the declaration of foreign holdings.
In June, the Congress of Deputies approved the Anti-Fraud Law which among its many rules included “. the obligation to report virtual currencies located abroad “for assets over 50,000 euros. It was also indicated that this would require the creation of a new form (a Model 721) or the inclusion of a detailed section in the 720 with the form and data that this declaration should have.
Although the regulation is already in force, this tax obligation is not yet applied since the authorities have not established the set of rules for its application. According to The ObjectiveThe declaration was subject to a regulatory development that has not been carried out and could be delayed for another year. The media quoted thePlan Anual de Control Tributario y Aduanero de 2022 of the Government.
Other aspects of the tax return remain the same
As reported by The Economist , other tax areas also remained unchanged with respect to the declaration of cryptocurrencies. The income tax (IRPF) form does not include a specific area to include cryptocurrencies and remains identical. The only change change — a concept relevant to cryptocurrencies that use the UTXO model — is the number of coins sent back to a user after they use their unspent outputs to initiate a transaction. that has been implemented is that cryptocurrencies now have a specific area that taxpayers must complete.
As for the controversial Model 720, there are projects to include cryptocurrencies and reports advance that one new regulation could be passed by next year’s tax season for 2022.
The news comes shortly after European courts disapproved the Model 720 for foreign asset declarations in January due to its disproportionate fines. Due to the landmark ruling, Spanish authorities have now moved to reimburse some taxpayers for penalties paid under this model.
More recently, two amendments were introduced in the Senate that remove the penalties and the non-applicability of statutes of limitations for the declaration of assets abroad, as reported by Voz Populi .
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Article by Hannah Estefania Perez / DiarioBitcoin
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