New research has highlighted a patchwork of laws, confused regulations and unusual concepts governing crypto taxation in Latin America.
Research from Latin American crypto exchange Buda has highlighted a patchwork of laws, confused regulations and unusual concepts governing crypto taxation in the region.
Buda has provided a series of tax guidelines outlining measures crypto traders should take into consideration when looking to comply with the authorities in Chile, Colombia, Peru, and Argentina.
In various countries in the region, there are different interpretations and concepts regarding what type of good or asset is considered to be a cryptocurrency.
Crypto legal definitions in Latin America
Chile, for example, considers any crypto as “a digital or virtual asset”; Colombia as an “immaterial good”; Peru as a “movable asset,” while in Argentina, there is no official definition at the moment.
The guide highlights many doubts concerning when taxes should be paid for owning cryptos or trading them.
In Peru, the authorities expect that people pay taxes on crypto when they receive payments in cryptocurrencies as a product of the recipient’s profession.
When people should pay taxes for crypto?
For Chile and Colombia, a concept called “alienate” is used, which basically means selling.