The Spanish authorities are taking a tough stance on the cryptocurrency industry, and the National Tax Agency seems to take this very seriously. Now, the Minister of the Estate has issued 14,800 warning letters to the Spaniards on the grounds that they allegedly failed or needed to declare crypto assets.
If cryptocurrency holders fail to file mandatory tax returns, the fine may exceed “5,900 USD”
According to Telemadrid, the Spanish Tax Agency has clearly requested that cryptocurrency be taxed and notified that it has reached the recipient of its communications.
Hacienda stated that holders of Spanish cryptocurrencies should declare their income in tax files. If they fail to do so, they may be fined more than 5,000 euros (US$5,900).
However, the manor clarified that domestic cryptocurrency holders are not responsible for their cryptocurrency purchase business, but are only responsible for profitable sales. Experts reported in the local media explained that the Spaniards should declare profitable sales “to be completed by 2020” in this case:
Either because we exchange them for euros, another cryptocurrency, or because we use them to buy goods, apartments or cars.
That being said, according to experts, if someone bought 10 Bitcoins (BTC) worth 10,000 Euros ($11,880) in 2017 and sold them for 200,000 ($237,700) Euros in 2020, then cryptocurrency holders People should “must declare capital gains of 190,000 euros (225,800 USD). “
Inland Revenue Department targets 66,000 cryptocurrency owners in 2020
However, the number of letters sent by the manor this time is much lower than the number of letters sent in 2020. The Spanish tax authority carried out a similar activity last year to send notifications to cryptocurrency owners, but it targeted 66,000 cryptocurrency holders.
This number represents a significant increase in the 14,700 tax letters sent by the agency to cryptocurrency owners in 2019.
As Bitcoin.com News reported in February 2021, Spanish Minister of Economy Ana de la Cueva stated that cryptocurrencies such as Bitcoin pose a “risk of default, given that users do not have the protection provided by traditional payment systems. “. Oppose the other party’s breach of contract. “
In the same month, the Spanish National Tax Administration issued guidelines to reduce tax evasion of cryptocurrencies.
What is your opinion on the Spanish tax authorities sending tax letters to 14,800 cryptocurrency holders? Let us know in the comments section below.
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