Individuals in Chile will have to pay taxes on cryptocurrency earnings this year. The Internal Revenue Service (SII) of the country informed that cryptoassets will also have to be filled on the Annual Income Tax Returns. This shows that regulatory agencies all over the world are playing a more active role in controlling the market.

Back in 2018, cryptocurrencies were not subject to the Value-Added Tax (VAT) since they were considered intangile assets. Income taxes in the country are paid once a year in April.

The information released by Diario Bitcoin says that cryptocurrencies will be included as ‘other own income and/or third-party income from companies that declare their effective income.’

Each user that trades digital assets has to register the operation through “tax-exempt invoices” in order for the agency to monitor them. The decision was taken after an important growth registered in the country related to digital assets. Companies and individuals are starting to use cryptocurrencies to purchase products and services.

Although users have to pay taxes on digital assets, the legal status of virtual currencies remains yet to be debated and created. However, this is very positive since it provides legitimacy to digital assets and allows for better regulation in the future.

The local news site CryptoNoticias talked with tax attorney Patricio Bravo, which is a member of a non-government organization called Bitcoin Chile. He said that the crypto community was expecting this decision taken by the Internal Revenue Service.

About it, he commented:

“The SII has arranged taxation in the broadest possible way, this is apparently due to two objectives: on one hand expand the tax structure as much as possible to cover all types of cryptoassets and, on the other hand, due to the current lack in Chilean legislation of figures specifically designed for this type of instruments, which makes it difficult to generate more specific items.”

Cryptocurrency exchanges in the country have also been experiencing some issues during the last year. Some banks decided to stop offering services to these companies due to the fact that they were dealing with digital assets.

At the same time, the Third Chamber of the Chilean Supreme Court rejected an appeal made by the Fourth Chamber of the Court of Appeals of Santiago that ruled that Banco Estado had to re-open accounts to clients.

Chile is expanding its presence in the crypto market and in Latin America. There are several companies operating in the country and one of the largest crypto conferences in 2018 was organized in Chile.

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