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Investing in Cryptocurrency

18/01/2021

Not only in Chile, but throughout the world, this growing attractive business is drawing attention, constantly increasing to more than 413% in the last 12 months and which every day generates enormous interest in investors. To enter this world of virtual assets you must be very careful and know that just as it can generate strong profits, you can also have losses from one day to the next. And like any operation that generates profits, it must be affected with taxes, even though there is still not much regulation on it. The taxation that affects the income obtained from the sale of cryptocurrencies is with the taxes of each country and the legislation that applies in a specific or generic way.

The income obtained in the purchase and sale of bitcoins or other virtual or digital assets are taxed with Corporate Tax or WHT as appropriate, and the taxpayer must declare said income in their tax return.

Regarding VAT, it has been pointed out that they are not subject to said tax since they are intangible assets.

However, as there is little specific tax regulation for this type of operations in the world, we believe that OECD recommendations could be a good guide for their application.

Javier Molina de Auren Chile