As a result of the increase in investments made by taxpayers in recent times in digital assets, such as virtual currencies, in 2021 the Treasury established by law the obligation to report them on form 720, informative declaration on assets and rights located abroad.

Despite the fact that this obligation is already a reality, currently, the way in which this new requirement must be met has not yet been specified, therefore, as this obligation is not implemented by law, its application is not possible for the present campaign of form 720.

In this same sense, in the tax control plan for the year 2022, recently approved, it is established that this new obligation of information of the cryptocurrencies in the form 720 (or in a new specific form for this type of assets), will be developed and will be regulated throughout this year, for which, foreseeably, this new obligation will not be enforceable until the 2023 campaign, which will be when information on this year will be reported.

In any case, the interpretation made is only transferable to the duty of information on virtual currencies in form 720, and in any case is it understood that it could exempt the taxpayer from paying Income Tax (IRPF) for possible gains derived from the transactions with cryptocurrencies or the duty to declare them, if the exemption limits are exceeded, in the Property Tax.

The above is about the interpretation made by the same expert team in digital taxation of addwill with whom you can contact for advice on taxation, the duties of information on digital assets and in general, on any type of question related to form 720.

At addwill, we are at your disposal if you wish to obtain more information and advice in this regard from our professionals in the crypto department. You can contact us by clicking here.