Cryptocurrency Management

Are you looking for an advisor specialized in cryptocurrencies?

Do you know the tax implications of trading cryptocurrencies, staking, the mining process, play to earn, generation of NFTs, airdrops, earndrops or rewards?

1. WHAT CAN WE DO FOR YOU AS A CRYPTOASSETS ADVISORY FIRM?

To understand our Bitcoins and cryptocurrency advisory services and their taxation, we must be clear about the origin of the cryptos.

Have you obtained profits through the trade of cryptocurrencies, staking, the mining process, play to earn, generation of NFTs, airdrops, earndrops or rewards?

Did you know that depending on their origin you will have to fill in different tax forms such as the IRPF, VAT or Form 720?

If you have any doubts about filing your income tax return, please contact us. We are experts in filing tax returns related to cryptocurrencies.

Ejemplo de tributación de criptomonedas

2. EXAMPLE OF CRYPTOCURRENCY TAXATION

In the following link, you will find a practical example of how cryptocurrencies should be taxed. We look into different examples: when a capital gain is obtained during the purchase and sale of assets and in the acquisition of cryptocurrencies in the mining process, among other different cases. The different models to be completed, tax rates, taxable bases and all the tax implications of the two activities will be shown.

3. INCOME TAX RETURN

As experts in cryptocurrencies we use Cointracking to obtain the tax report for the year in question. Having the corporate account we connect to your exchanges, with reading permissions to extract all the necessary information and to be able to make your tax return. The price of doing the tax return with us is from 290 euros + VAT. Keep in mind that only the license of the Cointracking program for individuals costs more than 100 euros and you would not have the help of a tax advisor.

The process you must follow is to fill out the form that we have enabled on the website. We will contact you shortly to schedule a video call and start the process, which will consist of the following phases:

  • Check your inbox. In it we have sent you a call with a link to Google Meets. On the day we will need to connect on the video call with you to guide you in obtaining the cryptocurrency transactions. It is important that you mark the day and time on your calendar so you don’t forget.
  • Prior to the call you must be logged in to all your exchanges, such as Binance, Coinbase, etc… This will reduce the time of our video call. If you use other wallets such as Metamask try to have the list with all the transactions you have made in the fiscal year with Etherscan. If you have any doubts, don’t worry, we will help you to get all this information during the video call.
  • What will we do during the video call? Mainly we will connect with a tool called Cointracking to your exchanges. With this tool we will get all the relevant tax reports to make the declaration.
  • The connection we will create will be read-only. Therefore, we will not be able to perform any operation within your exchanges beyond consulting the transactions.
  • Once the exchanges are linked, the operations take a few hours to synchronize, so the video call will end the moment we generate the connection. There is no need to wait for the synchronization to finish.
  • What do we do once the information is synchronized?
  1. We check to make sure that there are no missing or duplicated operations.
  2. If there are, we will send you a report to specify the nature of the transaction. That is to say if it is a withdrawal, a deposit, etc….
  3. In this case you must respond within 2 working days to close the tax report.
  4. Once we have the report finished, we will be able to calculate the capital gains or losses related to cryptocurrencies to be included in the income tax return.
  • Then our tax expert will contact you. We will send you an email to request all the relevant tax information to make the tax return. ID card, withholding certificate, rental contracts, etc…
  • You will also receive a link to make the payment corresponding to the tax return.
  • Once the payment has been made, a video call will be scheduled with the tax expert, who will close the tax return with whom you will review all the documentation, including that related to cryptocurrencies.

4. FREQUENTLY ASKED QUESTIONS

Taxation of cryptocurrencies Renta 2021 when the acquisitions and sales of virtual currencies are not carried out in the scope of an economic activity.

How is the sale of cryptocurrencies taxed?

The sale and purchase of cryptocurrencies generates a capital gain or loss for the difference between the acquisition value (AV) and the transfer value (TV). In the event that the difference (VT-VA) is positive, this purchase and sale generates a capital gain that must be declared in the savings base of the income tax return. In the event that the difference (VT-VA) is negative, this sale generates a capital loss that must be declared in the savings base of the income tax return.

What is the acquisition value and the transfer value?

Acquisition value: the amount paid for the acquired currency, including all acquisition costs (e.g. commissions).
Transfer value: the amount received for the currency sold, net transfer costs.

Can gains and losses be offset?

Both amounts are added and subtracted from each other to obtain the gain or loss, as the case may be, which must be taxed in the savings base of the tax return.

What is a transfer?

It is the sale of any virtual currency, either to buy another virtual currency or a legal tender. For example: if we sell ETH to buy BTC we are making a transfer of ETH that generates a capital gain or loss of ETH. If we sell BTC to obtain BUSD we are making a transmission of BTC that generates a capital gain or loss of BTC.

Is each transaction taxed as income or is it not taxed until it’s converted back to a legal currency?

Each transmission of virtual currency generates a capital gain or loss, regardless of whether the transmission is to obtain a new virtual currency or a legal tender (fiat).

If I have different exchanges, how do I calculate the gain or loss?

The calculation of the gain or loss is made by the FIFO method, i.e. the value of the currency being transferred is the first acquisition value. If a person is the holder of a currency that is acquired in different exchange offices or exchanges, it does not alter the formula for calculating the gain or loss, and therefore, the gain or loss cannot be calculated by exchanges.

Is there any amount to declare in the income tax return if I have only bought virtual currency but I have not made any sale?

No.

Do I have to declare any amount in my income tax return if, for example, I have bought 1 Bitcoin and later sold this Bitcoin to buy Ethereum?

Yes, in this case there is a purchase of Bitcoin and a sale of Bitcoin. The difference between the value in euros of the purchase of the Bitcoin and the value of the Bitcoin in euros on the day of the transmission to buy ETH, generates a capital gain or loss.

WE CAN IMPORT YOUR TRANSACTIONS FROM MORE THAN 50 EXCHANGES. SOME OF THEM ARE...

binance
crypto_com
kraken
bitpanda
coinex
tidex
whaleclub
bitvavo
blockfi
bitrue
bybit
bithumb
abra
liquid
gateio
hotbit

OUR PRICING

Our pricing

Our intention is that you bet more and more on blockchain technology.

Income Tax Return Campaign 2021

From 290€ for the filing of income tax returns

and much more...

COMPANIES THAT TRUST US

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CONSULTANCY SPECIALIZING IN THE ADOPTION OF BLOCKCHAIN TECHNOLOGY

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Eduard Vivar Mompel co fundador CRONUTS DIGITAL

Edu Vivar

SOCIO FUNDADOR - TRANSFORMACIÓN DIGITAL E INNOVACIÓN