An amendment of the tax model 720, which forced taxpayers to declare the crypto and other kinds of asset holdings outside of the country, was introduced in the Spanish Parliament.
law which was approved last June dictates that cryptocurrencies abroad would have to be declared using this model.
The proposed amendment seeks to eliminate certain penalties in the previous model 720 that were declaredby the Court of Justice of the European Union last month. According to the old structure, debtors could pay up to 150% of their holdings abroad depending on the circumstances. Also, taxpayers had to pay fines of 5,000 euros for giving inexact, fake, or incomplete data in the digital currency tax statement.
Also, the established 150% penalties disappear, something that the Court of Justice of the European Union had described as giving the model 720 an “extremely repressive character.” However, some things are maintained. The taxpayers have the obligation to report the cryptocurrency holdings they have abroad, and citizens that hide these assets in foreign lands will have to pay fines.
This “soft” model 720 will be used for declaring these taxes before March, when the period for presenting tax statements closes. It is unknown if the government will maintain this model for the future or if it will design a new model for the next year.