According to a determination of the Chilean government, the declaration of gains with cryptocurrencies in the country will become mandatory. The public agency named Servicio de Impuestos Internos (SII) has the responsibility for tax inspection and collection in Chile. Therefore, it may represent the first step of Chile’s government to the crypto regulation.
In 2018 the SII declared the exemption of investments in digital currencies from payment of Value Added Tax (VAT). However, this year the agency, although maintains the tax exemption, makes mandatory to declare it at the Income Tax. Thus, the information will be used to calculate the annual tax of the Chilean citizen. The agency published an instructs to declare it in the field for other forms of income in the Income Tax.
The growing regulation of the crypto market in Latin America
The decision of the SII came after the confirmation in the increasing adoption of the cryptocurrencies by the Chilean citizens. Both adopted currency in Chile, trades and investors, following the worldwide trend of adoption of this technology. This phenomenon has also occurred in Argentina where crypto companies have invested in offering service related to cryptocurrencies. The other neighbour Brazil has also become an attractive country for companies working with crypto technology.
With the growing adoption also grows the regulatory measures adopted by each country. In Brazil, the Internal Revenue Service has been adopting measures that point to future regulation of the market. Recently the Brazilian body launched a public consultation aimed at passing on information through the exchanges. The evolution of regulation throughout Latin America provides the exchange of information and experiences in this new market.