Several letters from the Exchequer put pressure on crypto investors with 2021 revenues

The Ministry of Finance will not miss the opportunity this year to increase collection through 2021 revenue, increasing pressure on cryptocurrencieswhich is explicitly included in the IRPF for the first time.

So that there is no doubt about the intentions, the Tax Agency has warned for months in advance what’s to come in the 2021 revenue statement.

“Hacienda has all spent last year and the previous one sending out letters that scare something, where he says he knows the client works with cryptocurrencies,” he said in the final podcast Jose Antonio Alvarez, CEO fiscalidadpatrimonial.com.

In other words, the exchequer has accurate data on investments with cryptocurrencies and also intends to go through the magnifying glass thoroughly, which will force investors to be particularly thorough when reviewing their operations.

When do you have to declare operations with cryptocurrencies?

The first step is to know who needs to fill the cryptocurrency box in the IRPF. “Any investor with more than 1,600 euros in profits, or losses in excess of 500 euros, must fill the cryptocurrency box,” he said. Alvarez.

If these limits are not met, there is no obligation to include those figures in the declaration. For so-called ‘holders’ investors, those who maintain their investments, this is a cause for peace of mind, but only visible, because the truth is that the casuistry is very complex.

Until they liquidate their positions they do not need to do anything. What happens when there are swaps between cryptocurrencies, or the wallet or even the broker is changed, “Treasury considers the operation closed, the same as if purchases are made with credit cards,” he said. Alvarez. And then yes, you have to pay.

So it can give the impression that no taxable operations have been carried out, as long as the money has not reached the investor’s current account, when in fact it has not.

“If someone has not brought money to their checking account, that does not mean they do not have to pay taxes. It is the taxpayer since the operation is closed or exchanged, ”he recalled. Alvarez.

Take extreme precautions

In cryptocurrencies, these small movements are consistent with the very blockchain, that is, people do them much more times than they think. So serious precautions need to be taken.

In some cases, the task can be very complex due to the high number of operations that can take place in some accounts. To do this, there are tools like cointracking that are responsible for preparing a tax report with the data provided by the brokers.

Of course, “there may be an margin of error and the question is what it will be, since it is not known what the Exchequer is looking for,” he explained. Alvarez.

Keep in mind that all operations in the account, those performed with cryptocurrencies or even the benefits obtained by the purchase of deposits in the metaverse.

Will the Tories capture me?

Everything like the rest of the financial assets is taxed, for capital gains and losses. The fine details will be learned in the coming years, but there are sections of up to 19 percent, then 21 percent and 23 percent for amounts over 50,000 euros.

The temptation for many investors is to exclude these operations from the income statement. It may make sense to think of surveillance as escape routes, especially in extreme environments such as the metaverse.

In fact, this is the key question you will get Alvarez for its clients, and the answer remains the same: “The Exchequer views these investments with the same magnifying glass, as do the rest of the patrimonial assets. In fact, he considers them an investment asset, ”he said.

In his view, this is the ideal year to get things right, that is, “declare everything you have in cryptocurrencies.”

“It can be difficult whether they can arrest you or not, but the Exchequer is four years old and it is easy to trace a public key,” the expert recalled.

And doing things right also requires quarantine the draft, because it is normal for the Tax Agency not to include cryptocurrency data in this document. But the exclusion of this data does not leave responsibility.

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