New Spanish Laws for Cryptocurrency Taxation
Spain has introduced new laws requiring residents holding crypto assets on non-Spanish platforms to declare them by March 31, 2024. The Spanish Tax Administration Agency – Agencia Tributaria – unveiled form 721, a dedicated tax declaration form for virtual assets held abroad.
Threshold and Submission Period
The new announcement mandates the submission period for form 721 declarations from Jan. 1 to the end of March 2024. Both individual and corporate taxpayers are required to disclose the amount of funds stored in their foreign crypto accounts as of Dec. 31, 2023. Individuals with crypto balances exceeding 50,000 euros (approximately $55,000) are required to declare their foreign holdings. Crypto holders using self-custodied wallets must report through the standard wealth tax form 714.
Increase in Regulatory Focus
The Spanish Tax Administration Agency intended to issue 328,000 warning notices to taxpayers in 2022, marking a 40% increase from 2021. Meanwhile, Spain’s oldest law enforcement agency – Guardia Civil – reportedly busted a criminal group in August that was responsible for a massive crypto scam, defrauding over 3,000 people worldwide and embezzling nearly $110 million.
International Efforts for Tax Compliance
Several governments across the world, including the US’s Internal Revenue Service (IRS), have ramped up efforts to combat the potential underreporting of taxable dealings in the sector. 48 countries issued a joint statement of “global commitment” to combat offshore crypto tax evasion. The UK-led Crypto-Asset Reporting Framework (CARF) was positioned as the OECD’s new tax transparency standard, requiring crypto platforms to share taxpayer information with tax authorities for effective international collaboration for tax compliance.
### News source: cryptopotato.com