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The Spanish tax authority started sending notices to about 66,000 cryptocurrency owners in the country

The Spanish tax authority has begun sending out warning notices to 66,000 cryptocurrency holders to remind them of their tax obligations. According to Europa Press, the Agencia Estatal de Administración Tributaria (AEAT) began the campaign on April 1 and will keep firing off letters until June 30 during the national COVID-19 crisis.

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Spain’s tax authority sending notices to 66,000 cryptocurrency owners

Despite the Coronavirus pandemic and the rising death toll, the Spanish tax agency, the Agencia Estatal de Administración Tributaria (AEAT), has started a campaign to send tax notices to remind residents about their tax obligations.

According to Europa Press:

“The Spanish tax authority plans to quadruple the notices to taxpayers with cryptocurrency … going from 14,700 notices last year to about 66,000 in the campaign that started this Wednesday.”

The 66,000 notices represent a sharp increase from 2019, the first year of the campaign when a reported 14,700 notices were sent out. The tax watchdog is also targeting those who earn income abroad and from real estate investments. The campaign will also see the number of tax letters sent to residents with real estate rental income increase from 700,000 to 1.5 million this year and from 2.17 million to 2.32 million for those with accounts abroad.

Javier Pastor, chief sales officer at Spain-based crypto exchange Bit2me, said he believes the government may be looking for ways to obtain income to help pay for the enormous costs incurred during the COVID-19 crisis.

Pastor pointed out the Spanish government has not postponed the filing of tax returns or the payment of taxes due to the pandemic. He said the measures would not affect Spanish exchanges much, even though he believes stricter KYC rules and transaction monitoring is on the way.

“This does not affect us much in the companies in the industry that have been doing things well. I think they, tax watchdog, are only scaring the novice user by applying such measures, plus I don’t think they are going to collect much tax revenue from the cryptocurrency sector because they are not even regulated in our country.”

Regulations and taxes on cryptocurrencies in Spain

Although cryptocurrencies are not legal in Spain, this country does not currently have a specific legal framework for them. Profits from the sale of cryptocurrencies are subject to capital gains tax of 19% to 23%. The sales of cryptocurrencies are subject to capital gains tax at rates ranging from 19% to 23%, detailed publication, noting that the higher rates apply to increases above 50,000 euros ($ 54,594).

Meanwhile, the exchange of cryptocurrencies into euros and vice versa is exempt from value-added tax (VAT). Spain is not alone in wanting to tax the owners of cryptocurrencies; Other countries that have done similar things include the United States, India, and Australia.

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