DEADLINE FOR CRYPTO ASSETS: THE REVENUE AGENCY SETS THE RULES

The decree of August 7, 2023, issued by the Revenue Agency, has enacted the implementing provisions for the regularization of crypto-assets and their related incomes.

Taxpayers who do not have business income and have omitted to declare crypto-assets held until December 31, 2021, in statements for years not yet finalized, have the option to bring them to light. They must complete a specific regularization form to be submitted by November 30, 2023, accompanied by a report with supporting documentation to demonstrate the legal origin of the invested funds, thereby negating any criminal implications.

Payment of the applicable penalties must be made in a single installment by the same date. The decree excludes the possibility of offsetting and stipulates that the procedure is completed with the submission of the form and payment within the specified deadlines.

The amnesty and determination of the amounts due to regularize one’s position will vary depending on the omissions made. The amnesty comes in two forms:

– Amnesty without income relevance (omission of only the RW section).

– Amnesty with income from cryptocurrencies (omission of both RW and RT sections).

The first case concerns the obligation, for tax monitoring purposes, to declare the value of held cryptocurrencies in the RW section. The penalty applied is 0.5% per year on the total undeclared value.

The second case arises when, in addition to the omission mentioned above, the taxpayer has generated capital gains – for example, through the sale or staking of cryptocurrencies – without paying the due substitute tax. In this scenario, taxable income has been generated but left untaxed. The penalty applied is 3.5% on the value of the crypto-assets held at the end of each tax period and/or at the end of the holding period to which the omitted incomes refer. This penalty is added to the penalty for not completing the RW section.

STS Legal Studio is available to assist its clients in the feasibility analysis, eligibility verification, potential submission of regularization requests, determination of substitute tax, as well as in the preparation of income tax returns for subsequent years.