The 2023 Income Tax Return campaign has already started this Wednesday, April 3, and this year it brings new developments compared to other fiscal years. This is everything you need to know to file your income tax returns in accordance with what the Tax Agency requires.
Review the deductions you can make
Tax deductions are varied and cover different aspects of our lives, from contributions to pension plans until the donations to charities.
It is important to note that each autonomous community has its own deductions, which may include benefits related to the education, the ccare of dependent persons and sustainability of housing.
In addition, there are tax benefits For those who rent a home, they pay Mortgages or perform Donations to NGOs. In the family sphere, there are deductions for Mothers with children under 3 years old, alimony and compensatory in case of Divorcio, as well as for large families.
Deductions may also be applied for: Contributions to political parties, unions and professional associationsIt is essential to be informed about these deductions by consulting the corresponding guide from the Tax Agency.
Buying and selling cryptocurrencies: how to declare them
Virtual currency transactions by individuals may generate capital gains or losses, depending on the difference between the acquisition value and the transfer value.
These transactions are divided into fiat currency exchange and other transactions. Capital gains or losses are calculated by considering the acquisition and transfer values, associated expenses and taxes.
Virtual currencies are identified according to the FIFO criterion in the case of partial sales. The temporary allocation of the gain or loss is made at the time of delivery of the virtual currencies. The gains or losses constitute savings income and must be included in the personal income tax return in the corresponding section.
When exchanging one currency for another, a capital gain or loss is also generated. This gain or loss is determined by the difference between the purchase value of the currency delivered and the market value of the currency received. The gains are included as savings income and are allocated at the time of the exchange. Losses must be demonstrated with legally accepted evidence. These operations must be declared in the corresponding section of the personal income tax return.
New boxes in the 2023 Income Tax Return
It is necessary to record gains and losses from cryptocurrencies as investment income when filing your Income Tax Return. Although this is not new, the Tax Agency modifies the forms every year to include the necessary information and calculate the final amounts.
Just like last year, in 2024, the Income Tax Return has a section dedicated to cryptocurrencies, which covers from box 1800 to 1814. For example, in boxes 1802 and 1803, the taxpayer must indicate the cryptocurrencies exchanged and received respectively; in boxes 1804 and 1806, the exchange and acquisition values must be entered to calculate the gains or losses in each transaction.
As for the the amounts that must be paid to the Treasury, the sections are as follows:
- For profits from operations carried out with cryptocurrencies less than €6.000, the payment is 19% of the profit.
- If they are greater than €6.000 but less than €50.000, it will be 21%.
- Between €50.001 and €200.000, 23%.
- Between €200.001 and €300.000, 27%.
- Above €300.001, 28%.
Regarding losses, those recorded during a fiscal year may be used in future tax returns, acting as a type of balance to offset possible future gains, with a maximum limit of 4 years.
Bit2Me Tax helps you with Income 2023
Bit2Me Tax is the tool that all Bit2Me users have available to download the data necessary to file their tax returns in relation to their cryptocurrencies. This year they have introduced new features regarding the launch of the tool in 2023.
- Fiscal Report 2023: Now you can generate and download your 2023 tax report directly from our App. Keep your records up to date and prepare your taxes more efficiently and in just two clicks from the Bit2Me App in the 'Tax' menu. To do this you must be at least Space Center level 1. If you haven't reached Space Center level 1 yet, don't worry, you can join Space Center to get these and more benefits only for €20 from B2M.
- Adaptation to Treasury specifications: We have adapted our tax reports to the new specifications of the Tax Agency in Spain. This includes changes to the taxation of the user's personal income tax in accordance with the latest regulations.
- Download previous reports: In addition to the current year's report, you can also access and download reports from previous years.
- Appointments with tax advisors: Starting April 3, you will be able to schedule your appointment with a tax advisor directly from our application and web platform. Get the professional advice you need to optimize your tax situation.
- Excel download of movements: You can also download for free an Excel file with all your movements in Bit2Me during 2023 and so far in 2024. This way you can have exhaustive control of all your records and do it for free.
