Tax Reporting - F.A.Qs

1. What is meant by “virtual currency”?

Virtual currency will be understood

as that digital representation of value not issued or guaranteed by a central

bank or public authority, not necessarily associated with a legally established

currency, and which does not have the legal status of currency or money, but

which is accepted as a means of exchange and can be transferred, stored, or

negotiated electronically.

2. [bold]What is meant by “exchange of virtual

currency for fiat currency”?[/bold]

The exchange of virtual currency for

fiduciary currency will be understood as the purchase and sale of virtual

currencies through the delivery or receipt of euros or any other foreign

currency of legal tender or electronic money accepted as a means of payment in

the country in which it was issued.

3. Why Nebeus is obliged to report?

Nebeus is required

to submit form 172, “Informative declaration on balances in virtual currencies” to the Spanish tax authorities, as falls within the scope

of section 1 of article 39 bis of the General Regulation of Actions and Procedures for Tax Management and Inspection

and for the Development of Common Standards of

the Procedures for Applying Taxes, approved by Royal Decree 1065/2007, of July 27 (RGAT,

hereinafter), that is, [bold]the

people and entities resident in Spain and the permanent establishments in [/bold]the [bold]Spanish territory of persons or entities residing

abroad, that provide services to safeguard private cryptographic keys on behalf

of third parties, to maintain, store and transfer virtual currencies, [/bold]whether

said service is provided primarily or in connection with another activity.

4. What will Nebeus report?

Those required to submit form 172, “Informative declaration on balances

in virtual currencies” will be required to provide the information contained in

Annex I of Order HFP/887/2023, of July 26, which approves model 172

"Informative declaration on balances in virtual currencies, and

establishes the conditions and procedure for its presentation, in accordance

with the provisions in article 39 bis of the RGAT.

Thus, the information to be provided to the Tax Administration will

include:

The identifying data (name and surname or company name or full name,

address, and tax identification number) of the people or entities to whom the

virtual currencies correspond at some point during the year, whether as owners,

authorized persons, or beneficiaries.

Balances as of December 31 for each virtual currency, indicating the

type of virtual currency, the number of units of virtual currency as of

December 31, and their valuation in euros.

Balances as of December 31 of fiduciary currency that, if applicable,

are held on behalf of third parties, with respect to which they will provide

the same identification data of its owner, authorized or beneficiary, as well

as its valuation in euros when the currency is other than the euro.

In the event that prior to December 31, the declarant had stopped

keeping the virtual currencies in custody with respect to the declared party,

the information to be provided will refer to the date on which such

circumstance occurred.

For more details you can consult the following link: [link:https://sede.agenciatributaria.gob.es/static_files/Sede/Procedimiento_ayuda/GI53/Anexo172.pdf]Content of the

informative declaration on balances in virtual currencies, model 172[/link].

[bold]Will Nebeus aggregate the total balance or report each wallet

separately?[/bold]

The information must be provided individually for each custody

currency, identifying them with a different DeclaredRegistrationID.

Thus, for example, if, on December 31 of the year to which the declaration

refers, the declaring entity custody 2 Bitcoins and 3 Ethereums of Juan Español

Español, it will provide the information related to the balance of Bitcoins of

Juan Español Español with a DeclaredRegistrationID and the information related

to the balance in Ethereums of Juan Español Español with a

DeclaredRegistrationID Y.

[bold]5. How will the valuation in euros of the

balance of each virtual wallet be carried out?[/bold]

To carry out the valuation in euros, the quote at 11:59 p.m. on

December 31 (Spanish continental time) offered by the main trading platforms or

price monitoring websites will be taken or, failing that, a reasonable estimate

will be provided. of the market value in euros of the virtual currency declared

at 11:59 p.m. on December 31.

In the event that, prior to December 31, the declarant had stopped

keeping the virtual currency object of declaration in custody, to carry out the

valuation in euros of the balance of the declared virtual currency, the price

offered by the main platforms will be taken. trading or price monitoring

websites on the date and time in which such circumstance would have occurred

or, failing that, a reasonable estimate of the market value in euros of the

virtual currency on the aforementioned date and time will be provided..

In both cases, in the ValorMonedas field the quote or value used

to carry out the valuation in euros of the declared virtual currency unit will

be indicated and in the OrigenValorMonedas field the trading platform or price

monitoring website will be reported, or, where applicable, from the place from

which the quote or value used to carry out the valuation in euros of the

declared virtual currency unit was obtained.

[bold]6. How will the valuation in euros of

fiduciary currency balance be carried out?[/bold]

To carry out the valuation in euros of the fiduciary currency

balances in the event that it is different from the euro, the exchange rate in

force on December 31 of the year to which the declared information corresponds

will be applied.

In the event that, prior to December 31, the declarant has stopped

keeping the fiduciary currency object of declaration in custody, the exchange

rate in force on the date on which such circumstance occurred will be applied.

In both cases, the exchange rate used to carry out the valuation

in euros will be indicated in the ValorMonedaFiduciaria field.

[bold]7. If I am a Spanish tax resident, where can

I find more information about my tax reporting obligations?[/bold]

Spanish tax residents will need to

consider their crypto investment from a tax perspective taking into

consideration Form 721. For further information please see https://sede.agenciatributaria.gob.es/Sede/procedimientoini/GI55.shtml or

approach your tax advisor or accountant.