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Madrid. December 13, 2022
Investors must make decisions before the end of the year to adjust their profits and losses -active and latent- and optimize the result of their income statement. In addition, balances in crypto assets greater than 50 thousand euros located abroad could be subject to the new 721 model. TaxCripto makes it easier for users to plan and settle their taxes in cryptocurrencies
December 31 is the deadline to make decisions that positively affect the taxation of the year 2022. On these dates, many investors analyze the results of the operations carried out during the year to determine the profits, losses or balances to be included in the different tax models to decide whether to carry out an operation that can minimize the “tax bill”. In addition to the usual operations with shares, participations or real estate assets, operations carried out with cryptocurrencies are especially important. According to ASUFIN (Association of Financial Users), more than 4.4 million tax residents in Spain own cryptocurrencies. Many of them are unaware of the tax treatment of the numerous operations they carry out with them. You can make purchases, sales, exchanges, contributions to liquidity pools, staking, farming, mining, futures, airdrops, hardforks, crowdloans and P2P lending, index or holding funds, among others.In the income statement, each of the Operations carried out in cryptocurrencies are taxed differently depending on various factors: type of operation, whether it is carried out within the framework of an economic activity or not, whether it has been carried out for consideration or free of charge… These operations also affect the losses that are occur in each one, since the possibility of compensation with capital gains or yields obtained is different. Model 721, new tax obligation for investors in crypto assets Model 721, pending approval, will have to be submitted by tax residents in Spain who have crypto assets located abroad, as of December 31, for a value greater than 50 thousand euros. If it were approved before December 31, 2022, it is mandatory to present it between March 1 and 31, 2023. Knowing the location of the crypto assets and what balances could be part of the 721 information model is essential to face the new tax legislation applicable to cryptocurrencies.” Taxcript already has the integration of this model in its platform. Taxcript can help you carry out adequate tax planning as it allows you to integrate the main transactions in cryptocurrencies, calculate losses and gains according to the FIFO method and estimate the tax cost of operations in cryptocurrencies. All of this, within a tax framework adapted to Spanish legislation”, points out Jesús Luna, CEO of TaxCripto. these operations and the profits or losses derived from them, TaxCripto offers the possibility of integrating them on the same platform and obtain the tax reports applicable to each tax model automatically. “Having the best information on the same platform allows adjusting the 2022 Income statement and the rest of the tax models in which cryptocurrencies must be declared. Decisions must be made now since June 2023 will be too late,” says Alberto Miranda , CFO and tax advisor of TaxCripto. Managing complete information in a reliable manner, allows decisions to be made on whether or not to sell some cryptocurrencies, whether to exchange them for others or keep them. Thus, for example, converting latent losses into real losses can be offset with the profits obtained during the year from other operations. For example, if the sum of the capital gains obtained during the year amounts to 6,000 euros, and latent losses in cryptocurrencies for an amount of 4,000 euros, in case of materializing them, the taxation of the year would be significantly reduced because instead of paying 1,140 euros (19% of the 6,000 euros), only 380 euros would be paid (19% of the 2,000 euros ) being able to reacquire or exchange the original cryptocurrencies on January 1. About TaxCripto TaxCripto is the first Spanish platform fully adapted to national tax legislation to help investors in cryptocurrencies to settle their taxes on this type of asset. The application allows you to prepare and download tax reports on personal income tax, wealth tax and Model 721. It has 16 exchanges, 9 wallets, more than 4,000 cryptocurrencies and 18 types of transactions. www.taxcrypto.es
Contact Contact name: TaxCripto Communication Dept. Contact description: TaxCripto Communication Dept. Contact telephone number: 609789206
