Spanish taxpayers would not get required to include their digital assets in the Form 720 declaration.
The declaration of cryptocurrency holdings in Spain is not an easy quest, and many users of the crypto environment are aware of it. Undoubtedly, the extension of tax regulations to lead the new class of assets does not help make the task easier. Recently, a controversial tax obligation linked to assets abroad awoke uncertainty among taxpayers.
The good news for many users is that the Spanish Ministry of Finance assured this week that holders of cryptocurrencies did not get required to include their holdings in the Informative Declaration of Assets Abroad. Spaniards should not involve their crypto in the controversial Model 720, which focuses on the funds held abroad.
The Spanish Tax Agency revealed that citizens have no duty to report their digital holdings for the 2021 financial year. In model 720, virtual assets should not get reported. The informative declaration on abroad’s virtual assets is unnecessary concerning the 2021 financial year.
Model 720 Does not Include Digital Assets
The news portal El Economista gathered the information, highlighting that there is still no regulation for digital assets. On this matter, the outlet consulted Gibernau’s financial advisor and partner, Esaú Alarcón, who explained that users don’t have to declare their holdings.
Last year, the Ministry of Finance revealed that it was getting ready to extend surveillance on digital assets. In particular, it said that it would oblige taxpayers to include operations with said currencies in the declaration of holdings abroad.
The Congress of Deputies approved the Anti-Fraud Law in June. Its many regulations included the obligation to report on virtual currencies based abroad for goods valued at more than 50,000 euros. A new form would have to be created or include a detailed section in the 720 with the structure and data that this declaration should have.
Although the regulations have already come into effect, this tax obligation would not yet apply since the authorities still have to implement the rules for its application. According to The Objective, the declaration was subject to regulatory development that could get delayed for another year. The outlet highlighted the government’s 2022 Annual Tax and Customs Control strategy.
Other Features of the Tax Return did not Change
As El Economista collected, other fiscal areas did not change concerning the declaration of cryptocurrencies either. The income tax form (IRPF) does not adhere to a specific sector to include digital assets; the only change implemented is that digital currencies now have a particular industry that must get filled out by contributors.
As for the controversial Model 720, there are projects to include digital assets, and reports expect that new regulation could receive approval for next year’s tax season, corresponding to 2022.
By: Jenson Nuñez
