Government opinion

A South American nation introduces a crypto tax declaration section just 3 months to the tax season

A few countries have started the year with a keen eye on taxation. This includes Chile which has included a crypto tax declaration section in the forms that Chileans filing their tax returns will use in April this year.

This is the first time the South American nation is requiring its citizenry to declare gains or losses acquired after their interaction with cryptocurrencies. Interesting, the inclusion of a crypto tax declaration section on the form comes even when the country does not have a clear legal framework around digital currencies.

According to a local news outlet, Diario Bitcoin:

Some consider that this measure grants greater legitimacy to the operations with cryptocurrencies since these assets are not yet properly regulated.

The crypto tax declaration section will be included in Form 22. On the form, crypto tax declaration will be on the section marked “other own / or third-party income from companies that declare their effective income”

Last year, Chile’s tax watchdog, Service de Impuestos Internos (SII) exempted digital currencies from being subjected to Value-Added Tax (VAT) since it labeled crypto as virtual assets.

SII’s decision to include a crypto tax declaration section on Form 22, has been informed by:

The boom that the commercialization of these assets has had in the national territory, as well as the fact that many people use them as valid currencies for the trade of products and services.

Even as SII includes a crypto tax declaration section, cryptocurrency exchanges in the country have not been at good terms with banks with the latter arbitrary closing crypto exchanges’ accounts without notice.

Do you think the inclusion of a crypto tax declaration section on the SII’s forms is a way to slowly legitimize virtual currencies in the South American nation?

Let us know your thoughts in the comments section below.

coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

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