The Colombian tax authority, DIAN, has reminded taxpayers that they have to start registering cryptocurrencies in their statements beginning this year. The director of the DIAN, Lisandro junco, reminded cryptocurrency users that this kind of asset is taxed as the other asset control by citizens. Colombia has already collected $1 billion in digital economy-related taxes.
Colombian Citizens Must Start Including Crypto in Their Tax Statements
The Colombian tax authority has reminded taxpayers about their duty of declaring cryptocurrency assets in their tax statements starting this year. in a consultation created by native media, the organization informed the public that it's empowered to perform verifications on the received information from taxpayers to ensure the right application of the tax laws of the country.
The director of the tax authority, Lisandro junco, informed about crypto assets and their tax standing in Colombia. He declared:
You have to pay taxes even if it is an element of the digital economy.
Furthermore, the organization defined that all parts fulfilling the definition of assets within the law ought to be declared, including bonds, stocks, and cryptocurrencies. however not solely cryptocurrency users got to know about crypto taxation. Cryptocurrency miners should also declare their mining numbers, because the agency has conjointly classified mining earnings as financial gain, according to BDO Colombia, an accounting firm.
Applicability and Penalties
While most tax watchdogs still depend on users to report their crypto transactions and holdings, the Colombian tax authority has some sources that can help it notice cryptocurrency evasion. junco explicit that the DIAN is immersed in numerous exchanges of knowledge with different countries, that deliver the names of the citizens that should be declaring crypto-related taxes. junco stated:
And what we do is review the substantial element against the tax return, whether or not there is room for an inaccuracy, an evasion or if it is up to date.
The penalties for not declaring cryptocurrency taxes in Colombia quantity to double the funds not enclosed within the tax statement. Colombia has collected $1 billion within the last 3 years in taxes connected to the digital economy, per junco, who invited taxpayers to declare their cryptocurrency holdings.
The authority had previously announced a series of actions designed to tighten the control on cryptocurrency usage to detect tax evasion faster.
( Sergio Goschenko, Bitcoin.com, 2022 )