The Internal Revenue Service authority also known as Servicio de Impuestos Internos, SII recently announces a section relating digital assets. This is within a form that taxpayers need to fill out for Annual Income Tax Returns.
The news says that back in 2018, the Chile Government considered cryptocurrencies as not subject to VAT. This is due to their intangible assets functionality. The taxpayers in Chile are need to pay taxes about crypto earnings, swelling up their entire income.
Moreover, in Chile, income taxes are annually payable in April. According to the Diario Bitcoin, the Chile Government, for the first time incorporates a cryptocurrency section in its forms.
The new section is said to be declared as “other own income and/or third-party income from companies that declare their effective income.”
The director at the SII, Fernando Barraza has signed an official letter saying the ones trading cryptos need to register their operations via using tax-exempt invoices, so the authority can easily monitor them.
Moreover, Diario Bitcoin states that they have experienced a cryptocurrency boom, as a Chile Government initiates monitoring cryptos and users are utilizing them as a valid currency for trading various products | services.
Meanwhile, the Chileans need to pay taxes regarding cryptocurrency earnings, yet the currencies legal status is still under discussion. Nevertheless, the news mentions that some believes that this move by the SII is positive, offering legitimacy to digital currencies.