B Law & Tax
01 August 2023

Tax advisor: Provisions approving forms 721, 172 and 173 related to cryptocurrencies are published

The Official State Gazette (BOE) of July 29, 2023 has made public the entry into force, the following day, of two orders related to the informative declarations for virtual currencies: on the one hand, Order HFP/886/2023, of July 26, which approves model 721 called “Informative declaration on virtual currencies located abroad”, and establishes the conditions and procedures for its presentation; and on the other hand, Order HFP/887/2023, also of July 26, which approves model 172 entitled “Informative declaration on balances in virtual currencies” and model 173 called “Informative declaration on operations with virtual currencies”. In addition, this order establishes the conditions and procedure for filing these returns.

Law 11/2021, of July 9, which aims to prevent and combat tax fraud and transpose Council Directive (EU) 2016/1164 of July 12, 2016, has introduced several regulatory amendments, the following being relevant in this context:

– Law 58/2003, of December 17, General Tax Law, has been amended to include a new informative obligation related to the possession of virtual currencies located abroad [DA 18.ª letter d) of Law 58/2003, of December 17].

– Amendments have also been made to Law 35/2006, of 28 November, on Personal Income Tax and to the laws affecting Corporate Income Tax, Non-Resident Income Tax and Wealth Tax, with the purpose of establishing new reporting obligations related both to the holding of virtual currencies and to the transactions carried out with them (DA 13.ª, paragraphs 6 and 7, of Law 35/2006, of 28 November).

The two aforementioned informative obligations are developed in Royal Decree 249/2023, of April 4. The purpose of these obligations is to improve tax control over the taxable events that may arise from the holding or activity related to virtual currencies.

In this sense, the orders dated July 26, 2023 aim to approve the necessary models to allow the filing of these new informative declarations. These models are incorporated to the list of informative declarations established in article 1.3 of Order HAP/2194/2013, dated November 22.

Form 721

Those obliged to file the informative return must do so annually and send it to the State Agency of Tax Administration by means of computer messages following the guidelines established in the annex of Order HFP/886/2023, of July 26.

The deadline for filing this return will be from January 1 to March 31 of the year following the year to which the information to be provided corresponds.

Order HFP/886/2023, of July 26, will apply for the first time to form 721, “Informative declaration on virtual currencies located abroad”, corresponding to fiscal year 2023. This return must be filed between January 1 and March 31, 2024.

Forms 172 and 173

Both forms must be filed annually by those obliged to declare and shall be sent to the State Agency of Tax Administration by means of computer messages in accordance with the contents specified in Annexes I and II of Order HFP/887/2023, of July 26.

The presentation of these declarations will be made on an annual basis, and the deadline for doing so will be during the month of January of the following year to which the declared information corresponds.

Order HFP/887/2023, of July 26, will be applied for the first time to the above mentioned forms to be filed in January 2024, corresponding to the fiscal year 2023. Regarding form 173, “Informative declaration on transactions with virtual currencies” for the fiscal year 2023, the sole transitory provision of Order HFP/887/2023, of July 26, establishes that it must be filed in January 2024, with respect to transactions carried out since the date of entry into force of Royal Decree 249/2023, of April 4.

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