Spain's Sumar parliamentary group has tabled amendments to reform three key tax laws that impact cryptocurrencies, including the General Tax Law, the Income Tax Law, and the Inheritance and Gift Tax Law.
According to a report from CriptoNoticias on Tuesday, the proposal would change the best way crypto profits are taxed by moving profits from assets that will not be financial instruments into the overall income tax bracket, which might raise the highest rate to 47% as a substitute of the present savings rate of 30%, while also setting a flat 30% tax for business owners.
The left-wing policy platform’s plan also calls for the National Securities Market Commission (CNMV) to create a visible “risk traffic light” system for cryptocurrencies that might be displayed on investor platforms.
Another controversial point is the proposal to categorize all cryptocurrencies as seizable assets which are entitled to seizure. Attorney Cris Carrascosa said on
Cris Carrascosa explains why the brand new proposal is senseless. Source: Cris Carrascosa
Critics speak of an attack on Bitcoin
In a post on He identified that self-custody Bitcoins can’t be confiscated or monitored in the identical way as traditional financial assets.
“The only thing these measures achieve is to make Spanish-based holders take into consideration fleeing if BTC rises a lot that they don’t care what politicians say,” he warned.
Meanwhile, tax inspectors Juan Faus and José María Gentil recently proposed making a special, more favorable tax system specifically for Bitcoin (BTC). Their proposal allows taxpayers to separate wallets and apply either FIFO (first-in, first-out) or weighted average methods, with value adjustments when moving assets between wallets to stop tax fraud.
The Spanish tax authority has been warning crypto holders about taxes for years, sending out 328,000 crypto tax alerts in 2023 for the 2022 fiscal yr, followed by 620,000 similar notices a yr later.
Japan plans a flat tax of 20%
As Spain considers increasing taxes on crypto profits, Japan's Financial Services Agency (FSA) is pushing for tax reform that will dramatically reduce the burden on crypto investors.
Instead of taxing crypto earnings as “other income” at rates of as much as 55%, Japan desires to impose a flat 20% capital gains tax to bring digital assets in keeping with stocks and make the country more competitive for traders and businesses.
