Chilean citizens to start paying taxes on their crypto earnings in 2019

19 Jan, 2019 | Updated: 19 Jan, 2019
by Richard Allen
Regulation
Chilean citizens to start paying taxes on their crypto earnings in 2019

According to local publication Dario Bitcoin, Chilean taxpayers are now going to have to pay taxes on their cryptocurrency earnings this year before the country’s revenue service, Servicio de Impuestos Internos (SII).

The country’s tax authority declared last year that digital currencies weren’t subject to Value Added Tax, but ruled that they are considered a form of income tax.

According to the publication, the Chilean government has for the first time ever, included a section specifically designed for cryptocurrencies that will be declared as "other own and/or third-party income from companies that declare their effective income.”

According to an official letter signed by the director of the SII, it was determined that those people who trade in digital assets have to register their operations on tax-exempt invoices so they could be monitored by the government.

However, the news outlet goes on to explain that the soaring popularity of cryptocurrencies saw many people use them “as valid currencies for the trade of products and services.” As such, the tax agency has been monitoring people who use cryptocurrency.

Despite the new tax requirement, the legal status of digital currencies is still under discussion. Some people, however, consider the new tax measures as positive because they provide a level of legitimacy to cryptocurrencies.

Read more: Bulgaria to demand 10% tax on crypto profits

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