Victor Ugochukwu · Oct 22, 2020 . 5min read
Spain’s anti-tax fraud bill to comprise of crypto implications
Spain's Draft Law on "Measures to Prevent and Combat Tax Fraud" will complicate crypto regulations. This bill will decrease tax fraud broadly.
By Komal Joshi · Oct 15, 2020 . 6min read
Recently, the “Draft Law on Measures to Prevent and Combat Tax Fraud” obtained a thumbs up from the Spanish Council of Ministers. It is Spain’s central governing entity. Spain’s Finance Minister and the government’s spokesperson, María Jesús Montero said at a press conference regarding the weekly cabinet meeting that this bill is a component of broader legislation to split down on tax fraud. Thus leading to various Spanish news outlets reporting it. However, Spain’s anti-tax fraud bill will also include crypto regulations.
Spanish taxpayers to disclose their crypto holdings.
The bill was transferred to the Spanish Congress of Deputies on Tuesday. However, it will now go to the parliament for discussion and final approval. Furthermore, they will also review their crypto application. Including the proposal of the legal text, it mentions that Spaniards and residents in Spain must notify the State about the property and operations they carry out with cryptocurrencies. It is notwithstanding whether they are located in Spain or abroad.
The bill also mentions that Spanish taxpayers must present the State with information about the cryptocurrencies they keep in their custody. However, they will have to report any type of operation. It includes acquiring, exchanging, transmitting, transferring, collecting, or paying with cryptocurrencies.
Prohibition on cash business transactions higher than 1,000 Euros
Additionally, the bill also forbids all-cash business transactions higher than 1,000 euros, down from the country’s former 2,500 euro limit. However, the latter amount resides in place for non-business transactions between persons. Any business-related payment more significant than 1000 euros must occur in electronic form, apparently developing Spain’s residents’ surveillance. If central bank digital currencies come into action, financial tracking could become even easier for countries. Thus, giving citizens less privacy and freedom.
For the uninitiated, capital gains from crypto trading by a resident of Spain are taxed between 19% and 23%. The higher rate refers to gains in excess of €50,000 ($58,666).
According to a recent announcement, all 350 Spanish MPs would get Bitcoin in their inboxes. It is a part of an educational initiative to promote cryptocurrencies in the country. Moreover, the move followed a similar campaign to that of Crypto for Congress. It transferred bitcoins to all its Members of U.S. Congress by the Chamber of Digital Commerce.
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Komal Joshi · Oct 22, 2020 . 5min read