Spain will seize cryptocurrency to pay taxes
More recently, we already wrote about new tax transparency standards for crypto assets. And now Spain plans to be at the forefront of this regulatory trend. In short, they plan to confiscate their cryptocurrency from Spaniards who are overdue on their tax payments.
The Spanish Ministry of Finance is expected to strengthen monitoring of cryptocurrency assets and implement changes to the system to allow the Spanish tax agency to identify and confiscate digital assets from taxpayers with overdue debts. According to El Economista, these actions will be implemented as part of the update of the General Fiscal Legislation.
Spain became one of the first EU members to introduce tax rules to regulate digital assets. From 2021, users are required to pay tax on income from transactions with cryptocurrency, as well as property tax, calculated based on the value of digital assets in their possession.
From April 1 of this year, citizens are also required to declare their assets stored on international exchanges. According to the new rules, such an obligation is imposed only on those whose balance exceeds the equivalent of 50,000 euros.
In addition, the Treasury is seeking to further tighten its crackdown on tax evasion. It aims to oblige banks and other financial institutions to provide information on all electronic money transactions carried out using payment cards.
At the end of January 2024, the account of the Spanish Embassy in Bosnia and Herzegovina on the social network X (formerly known as Twitter) was actively commenting on the posts of some cryptocurrency projects. This seems to only highlight Spain's high interest in the world of blockchain technology. Cointelegraph journalists suggested that the account could have been compromised, but the embassy did not confirm this information, and the comments were deleted.
At the end of January 2024, the account of the Spanish Embassy in Bosnia and Herzegovina on the social network X (formerly known as Twitter) was actively commenting on the posts of some cryptocurrency projects. This seems to only highlight Spain's high interest in the world of blockchain technology. Cointelegraph journalists suggested that the account could have been compromised, but the embassy did not confirm this information, and the comments were deleted.
Source: Cointelegraph
In other countries:
According to Coindesk, the tightening of Indonesia's tax policy led to a 60% drop in trading volumes on crypto exchanges over the year. Indonesians are required to pay VAT and income tax for any crypto transaction, and exchanges pay a percentage to the treasury for conducting their activities.
According to the Cabinet of Ministers of Japan, the abolition of the tax for legal entities on unrealized profits operating on the blockchain will attract additional investors and startups to the country. The tax policy of the Land of the Rising Sun will receive such an update from April 1, 2024. In our opinion such a measure can really work.
We also recall that in January, German police seized almost 50,000 BTC ($2.17 billion at the time of writing) obtained from illegal activities. It is likely that the German tax authority did not ignore this news.
According to the Cabinet of Ministers of Japan, the abolition of the tax for legal entities on unrealized profits operating on the blockchain will attract additional investors and startups to the country. The tax policy of the Land of the Rising Sun will receive such an update from April 1, 2024. In our opinion such a measure can really work.
We also recall that in January, German police seized almost 50,000 BTC ($2.17 billion at the time of writing) obtained from illegal activities. It is likely that the German tax authority did not ignore this news.
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