As ABC, a local daily news channel reported on Friday, October 19., cryptocurrency investors administered by Spain might meet obligatory reporting of their holdings for tax reasons under a new draft law, the government approved.
Revealed by the Spain finance minister María Jesús Montero at a press conference, the plan obtains to make owners of crypto assets announce them regardless of whether they are offshore, or Spain based.
Montero pointed that, for tax reasons precisely the government demands to gain “identification of the holders and the balances contributed by these virtual currencies.”
She continued; “It is stated as mandatory that people and companies inform the Tax Agency about this operation” and also pointed out, that it matters, if the owner is a Spain resident living abroad.
The Spanish government increased its efforts to regularize the digital currency field this year, back in April sending user identification applications to no less than sixty businesses involved in the emerging economy.
If the draft becomes a law, digital currency holdings would necessarily be included in Spanish government’s infamous tax reporting form – 720 form.
According to Bloomberg, punishments due to a false information regarding taxpayers’ incomes are very strict, involves a €5,000 ($5,745) fine for each incorrectness.
The stance underlines the patchwork regulatory atmosphere for crypto tax that perseveres in the European Union.
As reported by other news channels, some EU member nations -especially Poland- have U turned on formerly initiated conditions as well as tax entrance for digital currency holdings, while others, Portugal and Malta, for example, have already preferential strategies.
Author: Berna Bayindir
Photo Credit: Pixabay