Treasury increases control over cryptocurrencies and will require annual reporting of balances

The Ministry of Finance is preparing a Royal Decree with which it intends to increase control over the ownership of virtual currencies (cryptocurrencies). The text of the future rule, which is in the process of public hearing, states that the purpose of this amendment is to "improve tax control of taxable events that may arise from said holding or operation." Among other novel aspects, owners and exchange platforms will be required to report the balances they have in this type of investment assets, which are added to the requirements that have been implemented in recent years.

The Royal Decree that has been shared specifies that people or companies that have at some point in the year "private cryptographic keys, either as owners or beneficiaries" must report the public keys linked to said private keys and the balances at 31 December. december. “The information related to the balances will include, for each virtual currency, the type of virtual currency, the number of units of virtual currency at December 31 and its valuation in euros”, states the standard.

To report the valuation in euros of these assets, these persons or companies will take the average price as of December 31 offered by the main trading platforms as a reference. Failing that, the rule states, they will use “commonly used valuation” mechanisms that provide a reasonable estimate of the market value as of December 31. In any case, the price or value used to carry out this valuation must be reported.

Not only possession must be reported. Also operations. The intermediation platforms will be obliged to present an annual informative declaration regarding the operations of acquisition, transmission, exchange and transfer of virtual currencies, “whatever the agreed consideration, if any, as well as the collections and payments made in said currencies. , in which they intervene or mediate”. This information must include information on the type of operation, the date, the public keys of origin and destination associated with the virtual currencies being exchanged, the type and number of units of this cryptocurrency and the value in euros and the commissions and expenses. that have been associated with the agreement.

In addition, individuals and companies “will be required to submit an informative statement” in which all the virtual currencies held abroad are included, whether they are the owner or if they are a beneficiary or authorized. The balance will be reported on December 31 of each year. If it is no longer held but has been held during that year, the date on which these assets were disposed of will be reported. It will be understood that these assets are abroad when the person in charge of guarding these cryptocurrencies is not obliged to make a declaration in Spain.

The draft of the Royal Decree indicates that the information obligations must be presented as of January 1, 2023 with respect to the information "corresponding to the immediately preceding year". In other words, it will already affect the holding and operations carried out during this course.

The Royal Decree is an addition to the control measures that the Tax Agency has been applying in recent years. It does not change the way these virtual currencies are taxed, which are already taxed by the Wealth Tax or by the Personal Income Tax, but rather affects the control that the Treasury exercises over these complex monitoring products. During the current Income tax campaign, the Tax Agency had significantly increased the information given to cryptocurrency owners to declare their properties, after collecting information through intermediary platforms.

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