Imagine operating in the world of cryptocurrencies without knowing that there is a tax liability that could put your business at risk. In fact, if you don’t comply with the current regulations, you could face severe penalties and legal complications that affect your activity. Did you know that, by not filing the model 172, you are opening the door to possible audits or fines? But don’t worry, because Modo Cripto has all the information you need to stay up to date with your tax obligations and avoid complications. Let’s get started!
What is the 172 model?
The model 172 is an information return on virtual balances submitted to the Tax Agency, which must be submitted by certain entities in order to provide information on transactions involving cryptocurrencies. ¿Y cada cuánto debe presentarse? La periodicidad de la presentación del Model 172 is annual and shall be due in January of the following yeare to which the information declared corresponds.
Objective of model 172
The main objective of Model 172 is to ensure the control and fiscal transparency in cryptocurrency transactions. Through this model, the Tax agency aims to clearly identify the holders of the accounts and transactions carried out, as well as to know the balances of the accounts of cryptocurrencies stored. Specifically, the objectives of the Modelo 172 include tax control over virtual currency operations to avoid fraud, transparency over cryptocurrency account holders, and prevention of money laundering by identifying the movements made and their legitimacy. It should be noted that Model 172 is a crucial tool for the Tax Agency in its fight against tax evasion and avoidance
in the field of cryptocurrencies, and why not say it also, a powerful tool for collecting data on citizens who are crypto users. In recent years, the cryptoassets market has grown exponentially, which has led the tax authorities to pay special attention to this sector to prevent it from becoming a haven for illegal activities or tax evasion.
Transparent taxation
The information provided through Model 172 allows the Tax Agency to have a clear view of cryptocurrency transactions and balances held by users on various platforms and financial institutions. This transparency is fundamental not only for fraud control, but also for protecting the integrity of the financial system in general. When cryptocurrency transactions are kept within a regulated and transparent framework, the risk of cryptocurrency being used for activities such as money laundering or terrorist financing. Another key objetive of Model 172 is the detailed identification of the holders
of cryptocurrency accounts and transactions. This means that every transaction made must be linked to its corresponding holder, whether an individual or a legal entity. In this way, greater traceability of cryptocurrency movements is achieved, which is essential for proper fiscal control. The identification of account holders helps to avoid the use of opaque or fake accounts, which could facilitate tax evasion or money laundering.
More security
The model is also designed to ensure that exchange platforms and other cryptocurrency-related entities comply with their tax responsibilities.. Al imponer la obligatoriedad de reportar estas transacciones, se asegura que las compañías que operan en el sector cripto estén sujetas a las mismas normas de transparencia que otros sectores financieros. Esto contribuye a una It also helps to level the playing field between the different players in the financial market. In addition, the Model 172 seeks to foster a safe and secure environment
for investors and users of cryptocurrencies. Having tighter control over transactions and stored funds generates a more effective and efficient confidence in the market. Los inversores pueden tener la seguridad de que las plataformas en las que operan están reguladas y de que sus fondos están siendo manejados de forma transparente y conforme a la ley. Esto es especialmente importante en un sector como el de las criptomonedas, donde la percepción de riesgo sigue siendo elevada debido a la volatilidad y la naturaleza relativamente nueva de estos activos.
What information does Model 172 collect?
The Model 172 contains a series of detailed data that must be submitted by obliged entities, such as:
- Identification of the holder: name, surname, ID number and other identification data.
- Opening and closing balances: amounts of cryptoassets at the beginning and at the end of the reporting period.
- Operations volume: total purchases, sales, receipts and withdrawals during the fiscal year.
It is important to mention that the Model 172 has differences with other related fiscal models, such as Model 721, which is used for the declaration of foreign assets. Mientras que el modelo 721 se enfoca en la tenencia de criptoactivos fuera de España y lo deben presentar los usuarios personas físicas o empresas de criptomonedas que sean residentes en España, el Model 172 focuses on the detailed recording of transactions carried out by these users, and is submitted by persons and entities resident in Spain and permanent establishments in Spanish territory of persons or entities resident abroad, which provide services for safeguarding private cryptographic keys on behalf of third parties, for holding, storing and transferring virtual currencies.
Who must comply with this obligation?
Not all cryptocurrency users are obliged to file Model172.. Éste debe ser presentado por entidades específicas:
- Exchanges and trading platforms operating in Spain.
- Financial institutions offering cryptocurrency custody services.
- Intermediary companies that facilitate trading or exchanges of crypto-assets.
These obliged entities must report all relevant information on their customers’ transactions and storage of cryptocurrencies, ensuring that they comply with tax transparency regulations.
Penalties for non-compliance with Model 172
Failure to comply with model 172 can lead to significant penalties for the responsible entities. These fines are aimed at promoting transparency and penalising companies that do not comply with their tax obligations. Let us look at the main penalties for non-compliance:
- Financial penalties proportional to the volume of undeclared transactions.
- Additional penalties in case of recidivism or refusal to cooperate with the tax authorities.
For this reason, it is essential that obliged entities keep up to date with current tax regulations and take the necessary measures to comply with them.
Frequently asked questions about Model 172
What security measures do companies need to take to comply with Model 172?
Companies should implement security measures to ensure the accuracy of reported data and prevent unauthorised access.. Esto incluye sistemas de encriptación para la información transmitida y almacenamiento seguro de los registros.
Are stablecoins included in the Model 172?
Yes, stablecoins are also subject to Model 172, as they are considered cryptoassets and therefore have to be reported in the same way as other cryptocurrencies.
Operate with confidence and security
The Model 172 is a fundamental tool in order to ensure transparency and tax control in the cryptocurrency sector in Spain. Complying with it is essential for all entities that manage cryptoassets to operate within the legal framework, guarantee the transparency of their operations and avoid sanctions for non-compliance with tax regulations. Do you need to advice to file Model 172 or on other issues related to cryptocurrencies? Then get in touch with Modo Cripto. We are here to help you comply with your tax obligations, increase the security of your transactions and answer any questions you may have about the complex world of cryptocurrencies.
