Decentralization and non zero-rating – Tax Administration Colombian had already declared war on tax evaders in the cryptosphere. It once again invites cryptocurrency users to comply with their tax obligations, under penalty of heavy penalties.
Crypto taxation in Colombia: no escape for the recalcitrant?
The director of the Colombian tax administration, Lisandro Junco, reminded cryptocurrency users in the country that they will have to “pay taxes” on this type of asset, “even if it is an element of the economy. digital”. Taxpayers therefore have an obligation to include their cryptocurrencies in their tax declarationsfrom 2022.
The tax administration had informed the public that it could verify the data provided by tax filers, to ensure compliance with Colombia’s tax framework. It collaborates in this context with other countries which provide it with the names of citizens subject to this declaration obligation. Penalties for non-declaration amount to double the funds not included in the tax declaration.
These obligations also concern cryptocurrency miners who will have to declare their mining numbers. Mining earnings are classified, according to accounting firm BDO Colombia, as revenue – taxable.
According to Lisandro Junco Colombia would have collected $1 billion in taxes related to the digital economy.
Colombia therefore wants to fill the coffers of the State thanks to cryptocurrencies, and the tax administration does not hesitate to raise the tone to accomplish its mission. Bitcoin (BTC) and its juniors may not be well regarded by politicians in some countries, but that perception doesn’t stop tax authorities from milking cryptocurrency holders like cash cows. This is the case of India which has included a 30% tax on cryptocurrencies in its 2022 finance lawalthough the regulatory framework on cryptos in the country is not necessarily favorable to the development of the sector.
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