Fresh guidelines regarding crypto tax have been published by Spain’s Federal Tax Authority, SATA – (i.e. State Agency for Tax Administration). The purpose of the issuance of guidelines is to seek a prominent increase in the number of crypto taxpayers while reducing the instances of tax avoidance. Spanish Government says that the initiative is an essential component of its yearly tax as well as import and export policies.
Spanish Government has grown concerns regarding the growing risks of tax evasion amid crypto bull-run witnessed within and outside Spain. In pursuit to preventing crypto tax avoidance, SATA has recently implemented fresh crypto guidelines.
Through these guidelines, the Authority seeks to acquire information and data relating to crypto from individuals and from locally operating crypto exchanges. It was informed by Government Official that in order to prevent crypto tax avoidance, it is necessary to bring existing rules in conformity with the rest of the world. This will ensure regulatory compliance by taxpayers and will further strengthen the country’s economy and tax net, said Government Official.
As per guidelines, SATA is obligated to enquire about digital currencies owned/possessed by any individual with any crypto exchange operating in Spain. The guidelines also describe that voluntary payments of taxes by crypto owners will be incentivized further.
However, bare perusal of the guidelines suggests that SATA intends to implement the guidelines across the border as well. It was elaborated in the guidelines that the Authority aims to strengthen cooperation and ties with its international counterparts.
According to Spanish crypto experts, the whole scheme of implementing crypto guidelines is meaningless and misleading. They were of the view that the objective behind the initiative is mala-fide i.e. to acquire further information. They said that crypto exchanges are bound under the confidentiality agreement with their customers and therefore cannot provide such information. This will make a mess and jeopardize the entire crypto sphere within the country, said experts. They said that the guidelines are contrary to crypto interest and should be challenged before an appropriate forum.
Meanwhile, SATA further raised eyebrows over criminal organizations funded through crypto. It was revealed in the guidelines that for curtailing criminal funding, it is crucial to supervise crypto use and individual users.
On other hand, SATA also stressed the need of having Euro in the form of Central Bank Digital Currency (CBDC). It said that the growing use of cryptocurrencies across the globe necessitates adapting to digital currency. Developed countries have already initiated CBDCs programs along with Europe for which Spain too has showed willingness to be a part of.
SATA has officially requested taxpayers and crypto exchanges to assist and ensure cooperation for strengthening the country’s tax net. It has also urged the crypto community to ensure strict adherence to KYC and AML policies so as to prevent tax avoidance.