Bitcoin Is Not Legal So Let Us Tax Bitcoin:...
Array

Bitcoin Is Not Legal So Let Us Tax Bitcoin: Colombian Government

-

- Advertisment -

The Colombia Tax and Customs Office announced that Bitcoin is taxable despite the government had already declared Bitcoin isn’t legal in the country. 

Still illegal

In an announcement by the Superintendency of Corporations back in December 2016, Bitcoin was declared not being a legal tender following the increase of many investment scams linked to Bitcoin.

The authorities stated that the only legal tender that the country recognizes is the Colombian peso issued by the Colombian Banco De Republica.  

Head of the Superintendency of Corporations Francisco Reyes Villamizar discouraged people from investing in virtual currency scams, claiming Bitcoin is somehow related to them.

Tax on Bitcoin

At the same time, the interest in Bitcoin has substantially increased over last years and months with many investors following the movement of this new type of investment. According to the Financial Superintendence of Colombia, Bitcoin is considered a high-risk investment.

Being an investment, it is taxable. But it would be a bit difficult to place tax provisions on the cryptocurrency.

The government agency plans on to implement some tax rules on Bitcoin such as taxing the sale of particular cryptocurrencies in the market. Attorney Juan Sebastian Peredo states that people should report cryptocurrency investment profits on their income tax return correspondent to the tax rules.

Bitcoin expert Jonathan Alexander Higuera states:

“In Colombia, people are not required to report their investments or transactions in Bitcoins or any other cryptocurrency, so it can be used to evade taxes.”

Bitcoin profits still liable

Due to this, Colombia wants to implicate some tax rules for Bitcoin investors. Even though the Colombia’s Central Bank does not declare Bitcoins to be legal, this cannot stop people from wanting to invest the cryptocurrency as several markets allow investors to invest.

The government plans to put more efforts in taxing the investments in order to regulate profits from cryptocurrencies with the stated aim of ultimately preventing crimes such as money laundering or tax evasion.

Source link

Latest news

Why could GLBrain become a great solution to receive support during the crisis?

To support smaller and medium-sized businesses during the ongoing crisis, GLBrain offers services cost-free for all Austrians....

Make Fast and Secure Trades Using Bitengo.io

Bitengo.io is a Cryptocurrency trading platform that allows users to buy and sell their Cryptocurrency in a...

Network Security Using Cryptography: Everything you need to know

This article will describe what is Network Security Using Cryptography and everything you need to know before...

Mercuriex Cryptocurrency Exchange Launches New Utility Token, SURF

MercuriEx Cryptocurrency Exchange, originally developed in 2017, came under new ownership in December 2019. Since taking over the exchange,...
- Advertisement -Bitcoin Is Not Legal So Let Us Tax Bitcoin: Colombian Government

Fungibility: Bitcoin Mixers Favorite Term That No One Understands

Fungibility, perhaps the most important concept when dealing with a decentralized and anonymous currency, but does bitcoin...

Crypto can’t thrive in the real world – but stablecoins can

We can safely say that the hype about cryptocurrencies is pretty much over. The claims of Bitcoin...

Must read

Make Fast and Secure Trades Using Bitengo.io

Bitengo.io is a Cryptocurrency trading platform that...
- Advertisement -Bitcoin Is Not Legal So Let Us Tax Bitcoin: Colombian GovernmentBitcoin Is Not Legal So Let Us Tax Bitcoin: Colombian Government

You might also likeRELATED
Recommended to you