The income corresponding to the year 2021-2022 begins its journey from April 6 to next June 30, a time when taxpayers can already access their drafts electronically, by phone or in person.
As stipulated by the Tax Agency, all Spanish citizens with income above $22,000 per year are required to submit income statement within the time limit set by the Treasury.
But what happens to transactions made via Bizum and under what circumstances am I obliged to declare Bitcoin? Next, we will clarify all these key aspects to make the income statement in accordance with the law.
Am I obliged to declare Bitcoin or crypto-currencies?
For anyone who has been incited to acquire cryptocurrencies for some time, know that this year’s ISF draft declaration opens a specific box to identify virtual currency balances.
That said, not everyone should declare cryptocurrencies. The Tax Agency requires that they be declared when the income obtained exceeds the figure of $1,000, since almost all of these operations are considered taxable capital gains and losses.
In Europe, there has always been an obligation to declare cryptocurrencies to the Treasury. Since 2017, the AEAT’s annual tax and customs control plans have mentioned crypto-currencies to guarantee the proper taxation of these operations.
However, the control was noted this year to prevent tax evasion and evasion now that many citizens have been enticed to jump on the virtual currency bandwagon.
In fact, mining is considered an economic activity, for which the Treasury requires you to register as an entrepreneur and declare the profits as income from economic activities.
You can find more information in box 46 of the draft official document of the Declaration for this year 2021-2022 with the title ‘Balances in virtual currencies’.
What’s going on with the Bizum?
Contrary to what many may think when Bizum is associated with small amounts of money that are transferred between users, Bizum has the same regime as any bank transfer, with which banks must inform the tax authorities in the event of high operations.
As it is an electronic tool connected to a banking entity, Bizum has easy tracking for the Treasury. In reality, tax agency sets the limit of money that can be sent by Bizum without having to include it in the tax return.
Between individuals, the maximum amount set by the banks is $500, with a maximum number of transactions authorized per month. If the recipient is a company or a business, the Bizum counts like any other payment made by card.
