Spain approves Crypto Holdings disclosure bill from cryptocurrency holders.
Spain’s government has reportedly approved a bill requiring cryptocurrency holders to disclose their holdings in encryption and any gains in their assets.
Spain’s finance minister and government spokeswoman, Maria Jesus Montero, told a news conference after the weekly cabinet meeting that this bill is part of broader legislation to combat tax fraud, several Spanish news agencies reported.
The bill was sent to the Spanish Congress of Representatives on Tuesday and will now go to parliament for debate and final approval.
“This is a bill that will add to the work already being done by the tax authorities,” Montero explained, but did not give details on how the rules were implemented.
It is one of the government’s latest attempts to increase tax revenues amid a severe economic crisis caused by the coronavirus pandemic.
The bill, titled “Law on Preventive Measures to Combat Tax Avoidance,” seeks greater control over cryptocurrencies, the Criptonoicias publication describes, noting that the government intends to “compel citizens to provide detailed information on balances and transactions carried out inside and outside Spain.” , transmission, exchange, transfer, collections and payments, the news agency said.
The Spanish tax authority, Agencia Estatal de Administración Tributaria (AEAT), began sending tax notices in April to remind cryptocurrency owners of their tax liabilities.
According to Global Legal Insights, profits from the sale of cryptocurrencies by a resident of Spain are taxed between 19% and 23%. The highest interest rate applies to earnings over €50,000 ($58,666). The exchange between cryptocurrencies and the euro is exempt from VAT.
Meanwhile, bitcoin was sent to all 350 Spanish MPs last week as part of an education campaign by blockchain platform Tutellus and Observatory Blockchain.
This initiative is similar to the Crypto for Congress campaign that recently sent bitcoin to all members of Congress in the US.