The Ministry of Finance admits that information about cryptocurrencies does not have to be included in the Informative Declaration of Assets Abroad -the controversial Model 720-, after no regulatory development has yet been implemented. Although, as established by the anti-fraud law approved in June of last year, the Treasury recognizes that it cannot yet demand that it be declared.
The Tax Agency has already confirmed, as elEconomista has been able to verify, that there is no obligation for an informative declaration in the Model without the relevant regulatory development on cryptocurrencies. Therefore, there is no need to report cryptocurrencies in the 2021 Model 720, which is presented in the coming days. “There is no need to declare. There is no information to declare. There are no securities included, nor is there cryptocurrency data within the value boxes of Form 720. There is no reasonable exegesis that allows us to understand that cryptocurrencies are declared in this Model”, explains prosecutor Esaú Alarcón, partner of Gibernau.
In this way, although it establishes this requirement, it will not have to be declared at this time. Neither in taxes nor in the formal or procedural sphere is an obligation applied if there is no regulatory development. “It is necessary, it is essential. A regulation is never so complete as to eliminate a regulatory development,” says Esaú Alarcón.
No changes in personal income tax
In sum, the cryptocurrency statement remains largely unchanged for the time being. In the Personal Income Tax (IRPF) declaration, the Treasury maintains the Model without reforms in this regard and has not created any specific box to insert virtual currencies.
The only change that has occurred, and only formal, is in the Wealth Tax (IP) declaration. The new Treasury models, published in the BOE last Friday, do include a new specific box in the IP for the declaration of cryptocurrencies. However, the change is not substantial either. Although before there was no specific section for virtual currencies in the tax return, they had to be included in the Other Assets and Rights section.
From now on, what could happen is that during these months the processing of a regulatory project to include virtual currencies in the declaration of goods abroad begins. In this eventual case, the Administration could declare that it is obliged to incorporate cryptocurrencies in the declaration.
However, until now there is no regulatory process that affects cryptocurrencies. If there is one in the future, a new term would be given for its presentation and, in no case, would it influence the current Form 720 that must be declared this March.
The Tax Agency portal has issued a notice in which it specifies that “virtual currencies are not reported on Form 720”. In this way, the declaration is not required with respect to the 2021 financial year. In addition, it includes the new specific box for cryptocurrencies in the Wealth Tax. Until now it was included in the ‘Other Assets and Rights’ section.
He required the “obtaining of information from various sources on the operations carried out with cryptocurrencies.” In this sense, the Tax Agency foresaw its incorporation into the model of assets and rights abroad.
In addition, the Aeat is preparing the establishment of “an autonomous information obligation” on cryptocurrencies, which several industry experts have dubbed Model 721, although there is still no information on the regulatory development of this tool.
“The rise of virtual asset markets, particularly cryptocurrencies, generates tax risks that require specific actions to obtain information that facilitate voluntary compliance with tax obligations arising from the operations carried out, as well as the control of its correct taxation”, the Treasury justifies its increased control.
To declare the cryptocurrencies, the Treasury decided to introduce them in the declaration of goods abroad, which. The Treasury has already begun to return the penalties for the Declaration of Assets Abroad. The Regional Administrative Economic Court (TEAR) of Madrid, dependent on the Ministry of Finance, which was sanctioned for not presenting the declaration informing about 150,000 euros that it had invested in various accounts and securities abroad, and that came from prescribed periods.
The Plenary of Congress endorsed, without votes against, the new sanctioning regime of the Declaration of Assets Abroad. This movement returns the situation to that of 2012, with the only difference being that the reporting obligation of Form 720 will continue in force. The situation of the specific formal sanctions for goods abroad and the specific unjustified profit, with the 150% sanction, disappear.
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