Venezuela obliged cryptocurrency operators to pay taxes in virtual currencies

 

The Venezuelan government has issued a decree obliging taxpayers working with virtual currencies in the country to pay taxes in cryptocurrencies. Similarly, foreign exchange operators must pay taxes in the currencies they work with.

The decree States that the change is necessary to"strengthen the current tax regime". The article of the government publication, which published the information, notes:

"The government of President Nicolas Maduro has issued a decree according to which taxpayers engaged in transactions in foreign currencies or cryptocurrencies must pay taxes in the same currency with which they work, not in bolivars."

The decree States that "the Venezuelan people are currently facing a brutal war, supported by internal and external factors, which leads to the deterioration of the economy, so it is necessary to take sufficient measures to ensure the strengthening of the current tax regime". The Ministry of people's power of economy and Finance is responsible for the execution of the decree.

The first article of the decree States that taxpayers in Venezuela "carry out transactions "in foreign currencies or cryptocurrencies in accordance with the instructions and the law, and"must specify and extinguish their tax liabilities in foreign currency or cryptocurrency".

The decree lists two exceptions: transactions with securities traded on the exchange and exports of goods and services carried out by state bodies or organizations. In addition, the decree States that such payments as tax refunds, in cases specified in the decree, will be made in the national currency.

The municipality of Maracaibo in the state of Sulia in Venezuela recently announced that it will use the national cryptocurrency Petro as the basis for calculating the tax on income of business entities. The statement created some confusion among residents who thought they would have to pay their taxes in Petro.

On Tuesday, the quartermaster Servicio Desconcentrado de Administración Tributaria (Sedemat) Jean Carlos martínez (Jean Carlos Martínez) explained to the publication Noticia al Dia that "taxpayers will not pay taxes in Petro". He added that Petro has two purposes: one is a cryptocurrency, and the other is a unit of account, which is transferred to 9,000 sovereign bolivars, which will be used in payroll procedures.

The new decree establishes that"the payment of taxes will be made depending on the economic activity of each company or microenterprise". Martinez also said that if someone made transactions in Petro, bitcoin or other currency, they should declare their income in the currency they are working with.

In mid-December, it became known that the Venezuelan government transfers pension savings of citizens to Petro. In the same month, Maduro announced a twofold increase in the value of the cryptocurrency.

Despite the fact that there is no real evidence that the cryptocurrency has any security, there is still no, the state continues to distribute the digital currency, which went on sale on October 29. In mid-November, Maduro also said that when buying Petro can be converted into any virtual currency until the end of 2018.

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