As Spain became one of the world’s hardest-hit countries by the COVID-19 outbreak, the measures to aid the economy are relevant as never before.
Spain’s State Tax Administration Agency (AEAT) announced this week about its plans to intensify the control on income. The decision will affect taxpayers, who traded or invested in cryptocurrencies as well.
According to the Spanish Europa Press portal, the local tax authority collects taxes for cryptocurrency operations for the second year in a row. It has already issued messages to 66,000 cryptocurrency holders reminding them to declare their operations with virtual currencies within 2019.
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The number of announcements is nearly 4,5 times bigger than in the previous year when AEAT sent 14,700 messages. The higher number undoubtedly indicates a sharp increase in Spaniard’s interest and involvement in cryptocurrencies.
The campaign started on Wednesday, April 1, and will continue through June 30 regardless of the coronavirus pandemic.
Tax policy on cryptocurrencies
Virtual currencies are not controlled by governments or financial institutions. However, the same cannot be said about crypto-related financial operations. The number of countries, that introduce taxes on crypto operations and profit is growing.
Spain passed a law on tax payments for cryptocurrency profits back in 2018. They are subject to the same tax treatment as operations with fiat currencies or stocks. Earnings on cryptocurrencies are taxed at a variable rate of between 19% and 23%.
The United States recently published tax guidance stating that cryptocurrencies should be taxed according to the same rules as any other property or capital gains. Australian-based taxpayers who hold digital coins for more than 12 months may be eligible for the 50 percent capital gains tax discount.
According to Forbes report, there still are seven countries across the globe, that do not apply taxes for digital asset earnings. These countries are Switzerland, Germany, Portugal, Malta, Belarus, Singapore and Malaysia.
