Cryptocurrencies The period for the presentation of the income statement, corresponding to the year 2020, begins to run. From the 7th, it will be possible to present it online, and it will be possible to make the statement by phone or in person, from May 6 and June 2, respectively.

Cryptocurrencies are on the rise and are tout as a great alternative to investing in. They also have the support of large investors and the commitment of entities such as MasterCard. PayPal, and BBVA, which allow trading with bitcoin. Investors who sold this type of token or exchanged it for other assets in 2020 have had great benefits since during this period. It has revalued to more than 300%.

Despite its popularity, in Spain, there is still no specific tax regulation for cryptocurrencies.

The General Directorate of Taxes, in CV V0999-18, defines virtual currencies as: “intangible assets, calculable by shares or fractions of units, that do not have legal tender, which can be exchange for other assets, including other virtual currencies, rights or services, if they are accept by the person or entity that transmits the good or the right or provides the service, and that can be acquire or generally transmitting in exchange for the legal tender. “

Should I Include Bitcoin In The Income Statement?

There is no obligation to report the purchase of cryptocurrencies in the income statement. Considered a means of payment, virtual wallets have the same consideration as bank accounts.

If the cryptocurrency money is kept in the wallet without making any movement with it, it will have no real value because it has not been convert into legal tender. Instead, the sale or exchange of crypto assets should be include.

According to the DGT description, exchanges between cryptocurrencies should be consider exchanges of goods. Therefore, it is necessary to include in the income statement the benefits or losses derived from the transmission of cryptocurrencies. They will be tax in the income tax of individuals as any capital gain.

In the case of a swap, to calculate the variation in equity, it will be necessary to take into account:

  • The transmission value, which will be the greater of the market value of the virtual currency that it delivers or the market value of the currency it receives.
  • The acquisition value is made up of the actual amount of said acquisition plus the expense incurre. Regardless of the place of the transaction.
  • The difference between the two will result in capital gain or loss.

Losses can remain offset “without limit” with the returns on other assets also include in the capital gains and losses of the savings tax base. They can be offset by returns on mobile capital up to 25% of this type of benefit, a part that includes divide, interest from bank accounts. The recovery of a retirement plan, or an annuity. , for instance.

Specifically, transactions made with cryptocurrencies should be reflect in box 389 of the income statement.

Cryptocurrency Mining

Mining consists of verifying transactions made with virtual currency. The “miners” of these virtual currencies also receive a counterpart in cryptocurrencies.

Mining must be treat as an economic activity with the corresponding registration in the Treasury and must be include in the income statement. More precisely, the consideration received and the expenses related to this activity.

If you have any questions about the taxation of your cryptocurrencies. Our colleagues from the Tax Area will be ready to help you.