The Income Tax return campaign ends on June 30, so you only have 30 days to declare your cryptocurrencies.
This year, more than seven million taxpayers will have to include cryptocurrencies in their tax returns. For the first time in history, the tax return will have a new box that we will have to check if we have made profits (or losses) from buying and selling our crypto assets.
Starting this year, the statement of income It has box 46 that we will have to check to identify our cryptocurrency balances.
Do you have to declare your cryptocurrencies in your income tax return? Yes, although you will only have to do so if you have earned a few profits exceeding 1.000 euros during the 2021 financial year. If you have lost money, you do not need to declare them, although experts recommend that you do so, as this way you can compensate in the future.
Remember that if you have made profits from buying and selling cryptocurrencies during 2021 and you do not declare them, you could face a fine. penalty of up to 150% of the value, as described in the Annual Tax and Customs Control Plan.
Cryptocurrencies should be included in the generic section “Other assets and rights of economic content” in the draft of the Wealth Tax (IP) declaration, form D-714, specifically in the aforementioned box 46, entitled “Balances in virtual currencies”.
In the box we will have to fill in the fields:
- Percentage of ownership.
- Denomination or type of virtual currency.
- Number of units.
- Value in Euros.
As we have explained, it is only necessary to declare our cryptocurrencies when we have obtained effective profits from sales or returns (for example, by staking or earning), regardless of the means by which we have obtained these profits.
The Income Tax campaign ends on June 30, 2022, so you are only one month away from the deadline. If you have not yet sent your tax return this year, do not waste any more time and get started now.
If you have questions about how to include cryptocurrencies in your income tax return, don't worry. At Bit2Me Academy we have a Course on Taxation of Bitcoin and other Cryptocurrencies in Spain (only in Spanish), with which you will learn everything you need to know to correctly fill out box 46 on your tax return.
