{"id":13919,"date":"2022-06-30T13:53:47","date_gmt":"2022-06-30T11:53:47","guid":{"rendered":"https:\/\/etl-ilia.es\/?p=13919"},"modified":"2022-06-30T13:57:05","modified_gmt":"2022-06-30T11:57:05","slug":"form-721-first-details","status":"publish","type":"post","link":"https:\/\/etl-ilia.es\/en\/taxation-cryptocurrencies\/form-721-first-details\/","title":{"rendered":"Form 721, first details"},"content":{"rendered":"

Yesterday, June 29, 2022, the Draft Order<\/strong> approving form 721<\/strong>, “Information statement on cryptocurrencies located abroad,” was published. The link is provided along with this article and begins to shed light on how it will be the future form 721.<\/p>\n

The first big question that many raised was when a cryptocurrency is understood to be abroad. Well, according to the published proposal, this would be like this:<\/p>\n

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“when the person, entity or permanent establishment that safeguards them by providing services to safeguard the private cryptographic keys on behalf of third parties”, as well as “to maintain, store and transfer said currencies, is not required to declare personal income tax or corporate income tax, on assets or the income of non-residents”.<\/p>\n<\/blockquote>\n

The second issue to be resolved was the information to be provided. It will be necessary to inform, among others, of:<\/p>\n

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  • Personal data of the declarant.<\/li>\n
  • Cryptocurrency type.<\/li>\n
  • Number of units at the beginning of the year sent or received during the year and those that remain as of December 31 or the date of extinction.<\/li>\n
  • Value as of December 31 of the declared units.<\/li>\n
  • Public key linked to the reported cryptocurrencies.<\/li>\n
  • Information about the platform that guards the assets (name, address, NIF or identification number in the country of residence).<\/li>\n<\/ul>\n

    Third, regarding the valuation of the assets on the date indicated, the project indicates that:<\/p>\n

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    “The average price as of December 31 offered by the main trading platforms will be taken or, failing that, the commonly used valuation mechanisms that provide a reasonable estimate of the market value in euros will be used.”<\/p>\n<\/blockquote>\n

    Lastly, regarding the declaration period, it is established that the presentation must be formalised between January 1 and March 31<\/strong>.<\/p>\n

    In conclusion, a form that has many similarities with the declaration of assets abroad, which will complete the information provided by tax resident companies in Spain that participate in the world of cryptocurrencies via forms 172 and 173<\/strong> (whose Order projects have also been published on the same date) and that will provide the Tax Agency with more information to control taxpayer movements.<\/p>\n

    However, what has been published so far also presents some gaps<\/strong> that should be clarified in the coming months. Thus, for example, from the current content of the project, it would seem that cryptocurrencies deposited in non-custodial wallets<\/strong> or hardware devices<\/strong> would escape this obligation. There is also no reference to NFTs<\/strong>, so it would seem that they should not be reported.<\/p>\n<\/div><\/div><\/div><\/div><\/div>