Proposal to pay taxes to keep bitcoin raises doubts in Spain

Key facts:
  • The Treasury may require that the type of encryption indicated by each user in Spain be specified.

  • If the proposal is approved, it will take effect in 2023.

Spain’s Ministry of Finance has released a draft decree-law focusing on bitcoin and other cryptocurrencies owned by its citizens inside and outside Spain, but the document has raised doubts, especially among industry professionals.

Although a General Regulation Law Decree was proposed to develop the General Tax Law on June 17, it is still subject to changes aimed at Regulation of cryptocurrency holding and operations.

This is a proposed amendment to the regulations announced at the beginning of the year, when the regulator issued the order to citizens To report cryptocurrencies they hold abroadwhich will be part of a new tax return form, called 721, according to CriptoNoticias.

The Treasury’s interest is that Spanish citizens and service providers are compelled to Report the type and amount of cryptocurrency that they own

Likewise, they must notify the amount of bitcoin or cryptocurrency they sent and received in the fiscal year, as well as their value in euros, calculated as of December 31, according to the document.

In addition, the date of the initial registration on the platform, the date of the operation, The associated public key, as well as the fees and expenses associated with it. The proposed new form must be delivered from January 1 to March 31 of the following year, that is, if the draft is approved, it will enter into force in 2023.

exchange regulations

For their part, cryptocurrency-powered platforms must offer the operations that their users perform, Exchange, get or transfer virtual currenciesand costs and payments made with them.

Lawyer Cristina Carrascosa revealed many of the doubts raised by the new proposal of the Ministry of Finance. Source: YouTube / ISDI.

The regulator considers digital assets to be offshore “when the person, entity, or permanent institution that protects it by providing services to protect private cryptographic keys on behalf of third parties,” according to the document.

Questions raised by the proposal

Based on the draft submitted by the Spanish regulator, attorney Cristina Carrascosa, Cryptocurrency specialistAnd the expression He has “many doubts” and imagines that the same thing happens to all of his colleagues.

The first question that gets asked is, “How will I know, as a taxpayer, whether the exchange where I deposit my cryptocurrency complies with the regulator’s regulations, and therefore is exempt from filing 721?”

In this regard, it is noteworthy that Spanish regulators have established a registry of exchanges and platforms Would you like to provide services in that country. In this sense, Carrascosa suggests that it is not possible to know when the employing company will comply with what has been stipulated by the state.

I also wonder, If you lose the title of the owner of part of your assets In crypto assets, but not the other, “Do I have to send 721s, or will this option be enabled in the form already?”

For his part, said tax expert Jose Antonio Bravo I qualified Carrascosa’s ingenious letters. “It was a great summary,” he commented.

This article awaits the impressions requested by the economist José Antonio Bravo regarding the draft royal decree.

 

 

 

 

 

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