Venezuela issues decree to collect taxes in cryptocurrencies.
The Venezuelan government issued a decree in which it states that persons or companies that carry out operations with cryptocurrencies, or with foreign national currencies, must calculate and pay the taxes with cryptoactives, US dollars or euros, as the case may be.
Decree 3,719, published in the Official Gazette number 6,420, indicates that the measure was taken with the intention of “strengthening tax control mechanisms to improve efficiency in the collection of national taxes.” Within the aforementioned decree is also issued decree 35 “within the framework of the state of emergency and economic emergency”, which in its first article states the following:
“The taxpayers who carry out operations in the National Territory in foreign currency or cryptocurrency, authorized by the Law, through the Exchange Agreements signed between the National Executive and the Central Bank of Venezuela or by Presidential Decree, which constitute taxable events generating taxes national, must determine and pay obligations in foreign currency or cryptocurrency.”
Article 4 indicates that the “Tax Administration (National Integrated Service of Customs and Tax Administration, Seniat) in the exercise of the powers, powers and functions to collect the national taxes, will dictate the regulations that establish the formalities for declaration and payment in foreign currency or criptodivisas, of the obligations indicated in this Decree “, which translates into that it will be the Seniat that defines all the guidelines on the tax payment in cryptocurrencies.
The decree also points out that it will be the Superintendency of Banking Sector Institutions (Sudeban), which will “dictate the regulatory norms of the adjustments that must be made by the institutions that make up the banking sector for the execution of this Decree”, although it has a date of December 28, was released this Monday, January 7.
Article 8 emphasizes that “this Decree will become effective as of its publication in the Official Gazette of the Bolivarian Republic of Venezuela”, that is, it is already valid for the entire national territory.
The government exempted from payment of taxes in foreign currencies or cryptocurrencies all “the operations of the securities traded in the Stock Exchange” and “the export of goods and services, made by public bodies or entities”.
The decree indicates that “the determination and payment of tax obligations in foreign currency or cryptocurrency provided for in this Decree shall be applicable to the tax, its accessories and penalties derived from its non-compliance.” In addition, the Ministry of Economy and Finance will be responsible for ensuring the execution of the Presidential Decree.
Another provision is that established in Article 6 which states:
“In the case of proceeding with the repetition of payment, recovery or refund of national taxes for the cases established in this Decree, it will be made in national currency. For this purpose, the official exchange rate in effect for the date of payment of the tax or registration of the customs declaration will be applied, as the case may be, in accordance with the procedure established in the regulations that regulate the matter.”
Since 2017, the Venezuelan government has established as a state policy the use of cryptoactives such as Petro to evade the “financial blockade” of the United States and to obtain “new forms of international financing.” Now, with the issuance of this decree, the country would seek new ways to obtain foreign currency due to the economic situation that it experiences and that keeps it in recession.
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