Treasury raises control of cryptocurrencies: it will force balances and operations to be expressed in euros | Economy

People and companies holding virtual currencies in Spain will have to inform the Tax Agency at the end of each financial year about the amount of cryptocurrencies they hold and their value in euros. This obligation will also be extended to operations carried out with this type of asset, as well as to holders of virtual currencies located abroad, according to the latest draft royal decree submitted to public information by the Ministry of Finance.

The document, among other measures, aims to extend the current regulatory development to the changes introduced at the end of last year in the income tax of natural persons, as well as in the corporate tax, in the wealth tax and in the income of non-residents, all of them linked to this type of cryptoactive.

Among the companies affected are coin creators, exchange agencies, virtual wallets and service providers to safeguard cryptographic keys on behalf of third parties.

The novelties to which the Treasury points in the face of assets located abroad could serve as a guide for the new model 721 in which the ministry is working, in which the bases will be laid to declare in 2023 -about the 2022 financial year- the cryptocurrencies deposited in other countries. This obligation will fall on the owners, but also on the beneficiaries, authorized persons and attorneys-in-fact.

To carry out the valuation in euros, explains the portfolio directed by María Jesús Montero, the regulated entities –whether they have the assets inside or outside of Spain– will take the average price of the asset as of December 31 offered by the main trading platforms. Failing that, they will use commonly used valuation mechanisms that provide a reasonable estimate of the market value in euros of the virtual currency on the same date. “In this regard, the price or value used to carry out such valuation will be indicated,” the text details.

In turn, within the balances section, the Treasury will also require reporting of the fiduciary currency intended to provide cryptocurrency safeguard, storage or transfer services, “as well as its valuation in euros when the currency is different from the euro.”

In the operations section, for its part, the information to be provided to the Tax Administration will include the type of movement, the date of the operation and the public keys or public addresses of origin and destination associated with the virtual currencies received or delivered. It will also be necessary to record the type and number of units of virtual currency acquired, transmitted, exchanged or transferred, the value in euros for which the operation is carried out and, where appropriate, the commissions and associated expenses that will be received. the subject obliged to provide the information.

In parallel, when the operation does not entail a consideration in fiduciary currency in its entirety, and, therefore, it is necessary to carry out the valuation of the operation in euros, once again the obliged subjects will take the average price offered by the main platforms on the date in which the operation was carried out. If this is not possible, the commonly used assessment mechanisms will be used again.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button