New box in the specific income tax return for cryptocurrencies

La 2021 income campaign is already underway. The deadline for filing the Personal Income Tax (IRPF) return began in April and ends on June 30, 2022. This is a mandatory procedure for all taxpayers with regular residence in Spain. However, for many this year the Cryptocurrencies have become the pending subject of the Income statement.

Cryptocurrency investment in the income tax return

Starting Wednesday, April 6, taxpayers can file their income tax returns through the Tax Agency's website or application. But this year we must pay attention to the main changes included in the declaration. One of the most important aspects are the cryptocurrency investments, that starting this year they will have their own box in which to specify virtual currency balancesIn fact, this year the Tax Agency claims to have multiplied by 16 the number of Notices to taxpayers who traded with virtual currencies in 2021. And, according to data from TaxDown, the 11% of residents in Spain invest in cryptocurrency, that is, more than four million people. The user, once in the market, is obliged to declare it to the Treasury, a complex task. The problem is that very few people know the tax implications that accompany this type of investment.

Why this year there is a box for cryptocurrencies in the tax return

The Tax Agency is increasingly focusing on cryptocurrency trading by taxpayers because, although these transactions seem anonymous, they are not. That's why it's important Declare some of them to avoid sanctions by the Treasury. In the 2021 declaration, a box is opened to declare all revenue that has been earned from sales, that is, cryptocurrency gains; but also losses, since these are offset by profits, which will cause less taxes to be paid. Virtual currencies must also be included in their declaration the so-called miners, who are the people who create cryptocurrencies. However, Those who have bought but have not sold are exempt: “If we only bought cryptocurrency in 2021 and we haven't earned any income, nor have we sold, we don't have to indicate anything in our income statement,” Marta Rayaces, head of investments at TaxDown, told La Sexta.

How to declare cryptocurrency in 2021-2022 income

More and more people are betting on cryptocurrencies as a financial alternative. Although the reality is that these digital assets were born more than a decade ago thanks to the blockchain technology as a payment option without intermediaries and with less control from governments and institutions. This year, and despite the fact that until now cryptocurrencies had always been included in the generic section of “Other assets and rights of economic content”, for the first time income tax return models have a specific section for identifying virtual currency balances. This is box 46 of the draft of the Wealth Tax return, whose title is “Virtual currency balances”.Cryptocurrency investment is taxed on the income tax return like any other investment in savings products, as indicated by the financial product comparator Finect. This means that your performance will be considered a Capital gain or loss.The Tax Agency requires cryptocurrency investments to be reflected in the income tax return when Income earned exceeds one thousand euros, whether they are obtained in Spain or abroad. All of these operations are considered as capital gains and losses or movable capital returns that are also taxable. The fields to be filled in in the specific box for cryptocurrencies They are:

• Percentage of the Ownership.
• Denomination or type of virtual currency.
• Number of units.
• Value euros.

It is necessary to declare whenever there has been a effective transmission, such as the sale of assets and other benefits obtained by cryptocurrencies, regardless of the way in which the profits are obtained.

Income tax return advice

But managing this type of procedure, especially the tax return, can lead to large expenses of time and money. That's why there are more and more companies dedicated to facilitating this work to citizens, even without the need for him to have tax knowledge. However, it is necessary to bear in mind that not all companies offer real advantages when it comes to carrying out these processes. It is necessary to know how to distinguish which are considered the best income statement management services today.Today we are talking about two of the most demanded applications in this 2021-2022 income campaign: TaxDown and Taxfix.

TaxDown

TaxDown, the startup approved as Social Partner of the Tax Agency, is the first digital platform for filing an income tax return, ensuring that there are no errors thanks to the support from your tax experts and always with maximum savings. By applying an intelligent algorithm that analyzes the fiscal and personal situation of each user, the declaration can be ready and submitted through the application in just 15 minutes.

Taxfix

Taxfix, too Social Partner of the Tax Agency which complies with all the regulations of tax legislation, is another application for filing an income tax return without errors or worries, so agile, fast and simple. The most popular reporting app in Germany arrives in Spain with a digital service that allows you to do the income tax return from home and with the assistance of experts throughout the process.