Chilean Citizens To Pay Tax On Income From Cryptocurrencies
The Chilean Internal Revenue Service (SII) included a section on crypto revenues in the 2019 reporting declaration, which implies that now, crypto holders will pay tax on operations with digital assets, CCN reports, referring to local media.
In the past years, the crypto sphere was not taxed as cryptocurrencies were considered intangible assets. Since 2019, the rules have been changed, and from now on, owners of digital assets will report on their income every year in April. Crypto revenues are referred to as “other own income and/or third-party income”.
Crypto traders will have to register their monetary transactions so that the financial regulatory authority can track them. The crypto boom made the state authorities take such a step. Residents of the state have increasingly begun to use digital assets in their daily payments for goods and services.
Though cryptos will be included in the taxable sphere, their legal status in Chile is still uncertain and is under discussion. Some analysts state that such a decision by the authorities can already be considered a step towards recognizing the legitimacy of cryptocurrencies.
The SII initiative aims to expand the tax base and cover all types of digital assets, Patricio Bravo, a tax lawyer and member of the Bitcoin Chile public association, emphasized.
As previously reported, the anti-monopoly court in Chile banned banks from closing accounts of crypto exchanges.