Tax Reporting - F.A.Qs

Tax Reporting - F.A.Qs

1. What is meant by “virtual currency”?
 Virtual currency will be understood as that digital representation of value not issued or guaranteed by a central bank or public authority, not necessarily associated with a legally established currency, and which does not have the legal status of currency or money, but which is accepted as a means of exchange and can be transferred, stored, or negotiated electronically.

2.  What is meant by “exchange of virtual currency for fiat currency”?
 The exchange of virtual currency for fiduciary currency will be understood as the purchase and sale of virtual currencies through the delivery or receipt of euros or any other foreign currency of legal tender or electronic money accepted as a means of payment in the country in which it was issued.

3.  Why Nebeus is obliged to report?
 Nebeus is required to submit form 172, “Informative declaration on balances in virtual currencies” to the Spanish tax authorities, as falls within the scope of section 1 of article 39 bis of the General Regulation of Actions and Procedures for Tax Management and Inspection and for the Development of Common Standards of the Procedures for Applying Taxes, approved by Royal Decree 1065/2007, of July 27 (RGAT, hereinafter), that is, the people and entities resident in Spain and the permanent establishments in the Spanish territory of persons or entities residing abroad, that provide services to safeguard private cryptographic keys on behalf of third parties, to maintain, store and transfer virtual currencies, whether said service is provided primarily or in connection with another activity.

 4. What will Nebeus report?
 Those required to submit form 172, “Informative declaration on balances in virtual currencies” will be required to provide the information contained in Annex I of Order HFP/887/2023, of July 26, which approves model 172 "Informative declaration on balances in virtual currencies, and establishes the conditions and procedure for its presentation, in accordance with the provisions in article 39 bis of the RGAT.
 Thus, the information to be provided to the Tax Administration will include:
 The identifying data (name and surname or company name or full name, address, and tax identification number) of the people or entities to whom the virtual currencies correspond at some point during the year, whether as owners, authorized persons, or beneficiaries.
 Balances as of December 31 for each virtual currency, indicating the type of virtual currency, the number of units of virtual currency as of December 31, and their valuation in euros.
 Balances as of December 31 of fiduciary currency that, if applicable, are held on behalf of third parties, with respect to which they will provide the same identification data of its owner, authorized or beneficiary, as well as its valuation in euros when the currency is other than the euro.
 In the event that prior to December 31, the declarant had stopped keeping the virtual currencies in custody with respect to the declared party, the information to be provided will refer to the date on which such circumstance occurred.
 For more details you can consult the following link: Content of the informative declaration on balances in virtual currencies, model 172.

 Will Nebeus aggregate the total balance or report each wallet separately?

 The information must be provided individually for each custody currency, identifying them with a different DeclaredRegistrationID.
Thus, for example, if, on December 31 of the year to which the declaration refers, the declaring entity custody 2 Bitcoins and 3 Ethereums of Juan Español Español, it will provide the information related to the balance of Bitcoins of Juan Español Español with a DeclaredRegistrationID and the information related to the balance in Ethereums of Juan Español Español with a DeclaredRegistrationID Y.

5. How will the valuation in euros of the balance of each virtual wallet be carried out?
To carry out the valuation in euros, the quote at 11:59 p.m. on December 31 (Spanish continental time) offered by the main trading platforms or price monitoring websites will be taken or, failing that, a reasonable estimate will be provided. of the market value in euros of the virtual currency declared at 11:59 p.m. on December 31.
In the event that, prior to December 31, the declarant had stopped keeping the virtual currency object of declaration in custody, to carry out the valuation in euros of the balance of the declared virtual currency, the price offered by the main platforms will be taken. trading or price monitoring websites on the date and time in which such circumstance would have occurred or, failing that, a reasonable estimate of the market value in euros of the virtual currency on the aforementioned date and time will be provided. .
In both cases, in the ValorMonedas field the quote or value used to carry out the valuation in euros of the declared virtual currency unit will be indicated and in the OrigenValorMonedas field the trading platform or price monitoring website will be reported, or, where applicable, from the place from which the quote or value used to carry out the valuation in euros of the declared virtual currency unit was obtained.

6. How will the valuation in euros of fiduciary currency balance be carried out?
To carry out the valuation in euros of the fiduciary currency balances in the event that it is different from the euro, the exchange rate in force on December 31 of the year to which the declared information corresponds will be applied.
In the event that, prior to December 31, the declarant has stopped keeping the fiduciary currency object of declaration in custody, the exchange rate in force on the date on which such circumstance occurred will be applied.
In both cases, the exchange rate used to carry out the valuation in euros will be indicated in the ValorMonedaFiduciaria field.

7. If I am a Spanish tax resident, where can I find more information about my tax reporting obligations?
Spanish tax residents will need to consider their crypto investment from a tax perspective taking into consideration Form 721. For further information please see https://sede.agenciatributaria.gob.es/Sede/procedimientoini/GI55.shtml or approach your tax advisor or accountant.