Spanish Tax Agency to Send Notices to 66,000 Crypto Traders

Spain's tax agency, the Agencia Estatal de Administración Tributaria (AEAT), is going to send notices to the cryptocurrency traders despite the country's ongoing battle with the Coronavirus Coronavirus The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, Read this Term.

Originally reported by Europa Press earlier this week, the tax agency will send notices between April 1 to June 30 to around 66,000 digital currency investors.

This will be the second consecutive year for the Spanish agency to send notices to crypto investors as last year it handed out 14,700 notices - making the estimated figure for 2020 three times.

In Spain, digital currencies are taxed under the capital gains tax laws, the rate of which ranges from 19 percent to 23 percent.

The Spanish tax authority has been actively pointing out crypto traders since 2015, and to properly tax crypto incomes, the Spanish authorities are also collecting data from over 60 crypto platforms, including several crypto exchanges.

Apart from the digital currency traders, the tax agency is also going to send notices to the individuals with property rentals and having an income source from abroad.

Crypto taxation struggles

Though Spain is taxing crypto profits in double digits, it's neighbor Portugal last year announced a complete exemption on crypto trading and Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term.

Meanwhile, other global tax agencies are also gearing up to send notifications to individuals not reporting any profits incurred from digital currency-related activities.

The Australian Taxation Office (ATO) last month warned crypto profiteers of stiff penalties if they fail to report on their digital currency holdings or incomes.

The US Internal Revenue Service (IRS) also sent letters to taxpayers who might have failed to report income and pay the resulting tax from cryptocurrency transactions.

In South Korea, however, the debate on taxing cryptocurrencies still persists as different agencies have different views on the sector.