Chilean IRS requires to declare crypto on taxes
According to the Chilean Internal Revenue Service (IRS), crypto users must now declare all digital currency earnings on their taxes. Earlier in January, a Chilean court forced all banks to keep the accounts of local crypto exchanges open.
In 2018, the Chilean court published a decree which stated that crypto wasn’t included in Chile’s tax law but still must have been declared them when filing annual income taxes. This is because the Chilean government has classified crypto as an “intangible asset,” While it’s still not considered currency, crypto holders and users won’t have to pay taxes on them but would still have to declare them.
For the first time, the Chilean tax form 22 will include a section designed for crypto and digital asset declarations.
Chili’s Minister of Finance, Felipe Larrain, stated in December that crypto is on its way to becoming more “regulated” in the country, which could mean more regulations underway in early 2019, experts say.
Chili has joined a number of other countries worldwide that recently included cryptocurrency in their annual tax declarations. One of them is Spain, which ordered all cryptocurrency users to declare the crypto assets they own in the country, as well as offshore, introducing hefty penalties and fees for those who don’t follow.