Just like cryptocurrency holders and investors, companies and entities that own crypto assets are also required to file an information return on transactions carried out with digital assets.
In the specific case of companies and corporations, the lawyer expert in cryptocurrency tax advice from Aktion Legal, Patricia Navarro, who participated in the webinar "Crypto Taxation 2024” from Bit2Me, commented that legal entities that own cryptocurrencies are subject to additional corporate tax declarations, which is why it is essential to correctly record profits and losses with crypto assets in order to pay taxes without errors.
According to the expert, companies and corporations must account for the income and capital losses generated by cryptocurrency operations, in order to determine whether the crypto transactions carried out are taxable or not.
Navarro commented that Companies and corporations that are dedicated exclusively to investing in cryptocurrencies are classified in the category of “intangible assets", so when making the declaration report they must consider the value or acquisition cost of the crypto assets.
Regarding the sale of cryptocurrencies by these entities dedicated to cryptoinvestment, he commented that, at the time of selling, it is not mandatory for companies to follow the FIFO (First in, first out) model, since they can use the average cost of the assets in their respective reports. On the other hand, he pointed out that, as it is an unusual benefit for the company, these are reflected in the items of extraordinary benefits and are taxed according to the general corporate tax rates.
"We really have to see how the income or losses that have been generated have been accounted for, because they may be accounted for directly as income, when they should not be," said the expert.
Finally, Navarro recalled that the income tax declaration by companies and corporations has its particularities, so it is essential to keep the correct accounting for the 2023 fiscal year.
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: You can now 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 have not yet reached Space Center level 1, don't worry, you can join Space Center to get these and more benefits.
- 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 app and web platform. Get the professional advice you need to optimize your tax situation.
- Excel download of movements: You can also download an Excel file for free 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.
