Discover the latest news in the crypto world: Order HFP/887/2023 has been published in the Official State Gazette of Spain.
Below is a detailed presentation of the revolutionary model 172 on the “Informative statement on balances in virtual currencies” and model 173 that addresses “Operations with virtual currencies” in Spain, published on July 29, 2023, in the Official State Gazette:
“To establish new information obligations related to the possession of virtual currencies and the operations carried out with them. In order to improve tax control of taxable events that may arise from said possession or operation.”
Cryptocurrency Information Model 172: Everything You Need to Know
Form 172, “Informative declaration on balances in virtual currencies”, must be submitted annually and its submission period will be the month of January of the year following the one in which the declared information corresponds. And be sent to the State Tax Administration Agency by sending computer messages, with the content referred to in Annex I.
In such a case, the following persons and entities, previously established in Law 35/2006, are obliged to submit form 172:
- People and entities resident in Spain.
- Permanent establishments in the Spanish territory of persons or entities residing abroad.
Model 173: Everything you need to know about Operations with Virtual Currencies
Model 173 is regulated in section 7 of additional provision 13 of Law 35/2006, on Personal Income Tax.
However, model 173, “Informative declaration on operations with virtual currencies”, must be submitted annually and its submission period will be the month of January of the year following the one in which the declared information corresponds. And be sent to the State Tax Administration Agency by sending computer messages and with the content referred to in annex II thereof.
In fact, those required to submit form 173, “Informative statement on operations with virtual currencies”, are the following entities and companies:
- Providers of exchange services between virtual currencies and legal tender or between different virtual currencies.
- Intermediaries involved in carrying out operations with virtual currencies.
- Service providers to safeguard crypto private keys on behalf of third parties, in charge of the maintenance, storage, and transfer of virtual currencies.
How Does It Affect the Country’s Taxpayers?
Spain’s ruling on digital assets has significant implications for the country’s taxpayers. Here are some important issues that affect taxpayers:
Information obligations: Taxpayers who own digital assets are obliged to comply with the information commitments established in forms 172 and 173.
Taxation of earnings: Earnings must be declared and taxed in accordance with the corresponding tax regulations.
Asset valuation: Taxpayers must determine the euro value of their digital assets at specific times, such as the end of the tax year, following established criteria.
Control and verification: The tax authorities can carry out control and verification actions to ensure compliance with the obligations related to digital assets.
Regularization of previous situations: The resolution also establishes a framework for the regularization of previous situations, which allows taxpayers to correct possible non-compliances or declare assets not declared in previous years.
It is essential that taxpayers are aware of these implications and comply with the obligations established by the resolution. It is always best to consult a qualified tax advisor or professional for specific guidance on how the resolution affects one’s particular situation.
By Audy Castaneda
