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The Venezuelan government has published a decree requiring taxpayers with crypto operations in the country to pay their taxes in cryptocurrencies. Similarly, operators of foreign currencies must pay their taxes in those currencies. The decree states that the change is necessary for the âstrengthening of the current fiscal regime.â
Also read:Â Indian Supreme Court Moves Crypto Hearing, Community Calls for Positive Regulations
Paying Taxes in Cryptocurrencies
The Venezuelan government published the official gazette No. 6,420 dated Dec. 28 on Monday, local media reported. It contains Decree No. 3,719 which outlines new tax payment rules for cryptocurrency operators. Dinero publication explained:
The government of President NicolĂĄs Maduro published a decree that will require taxpayers who carry out operations in foreign currencies or cryptocurrencies to pay their taxes in that same currency and not in bolivars.
The decree states that âthe Venezuelan people are currently facing a fierce war waged by internal and external factors that pursue the deterioration of the economy, which is why it is necessary to adopt sufficient measures to ensure the strengthening of the current fiscal regime.â The Ministry of Popular Power of Economy and Finance is in charge of the execution of the decree which is effective as of the time of the publication in the national gazette.
Article one of the decree states that taxpayers in Venezuela âwho carry out operationsâ in foreign currencies or cryptocurrencies as authorized by the law âmust determine and pay [their tax] obligations in a foreign currency or cryptocurrency.â
Two exemptions are listed in the decree: âtransactions of securities traded on a stock exchangeâ and âthe export of goods and services, carried out by public bodies or entities.â
Furthermore, the decree describes that payments such as tax refunds for cases established in the decree will be made in the ânational currency.â
Using Petro for Tax Calculations
Maracaibo Municipality in Venezuelaâs Zulia State recently announced that it will use the national âcryptocurrency,â the petro, as the basis for business tax calculations, Runrunes reported. The announcement created some confusion among residents, who thought that they would have to pay their taxes in petros.
On Tuesday, the intendant of Servicio Desconcentrado de AdministraciĂłn Tributaria (Sedemat), Jean Carlos MartĂnez, clarified to Noticia al Dia publication that âtaxpayers will not be charged taxes in petros.â He elaborated:
We are using the value of the petro as a reference unit to be able to determine the minimum tax, since the ordinance of the current economic unit is still stipulated in percentages of gross income.
He added that the petro has two values: one as a cryptocurrency and the other is âas a unit of account that translates into 9,000 sovereign bolivars, which will be used in passport procedures or current salaries.â
The new decree establishes âthat the payment of taxes will be made depending on the economic activity of each company or microenterprise,â the news outlet noted. Martinez was then quoted as saying, âIf someone had transactions in petro, bitcoin or other currency, [they] should declare [their income] according to the currency that [they] manage.â
What do you think of Venezuela requiring crypto operators to pay taxes in cryptocurrencies? Let us know in the comments section below.
Images courtesy of Shutterstock and the Venezuelan government.
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