The Colombian tax authority, DIAN, has reminded taxpayers that they must start recording cryptocurrencies in their returns starting this year. DIAN Director Lisandro Junco reminded cryptocurrency users that this type of asset is taxed like any other asset held by citizens. Colombia has already collected $1 billion in taxes related to the digital economy.
Colombian Citizens Must Start Including Crypto in Their Tax Returns
The Colombian tax authority has reminded taxpayers of their obligation to declare cryptocurrency assets in their tax returns starting this year. In a consultation made by the local media, the organization informed the public that it is empowered to carry out checks on the data received from taxpayers to ensure the proper application of the country’s tax laws.
The Director of Tax Administration, Lisandro Junco, informed about crypto assets and their tax status in Colombia. He stated :
You have to pay taxes even though it is part of the digital economy.
Additionally, the organization has defined that all items meeting the definition of assets in the law must be declared, including bonds, stocks and cryptocurrencies. But cryptocurrency users aren’t the only ones who need to know about crypto taxation. Cryptocurrency miners must also report their mining numbers, as the agency has also classified mining revenue as income, according to BDO Colombia, an accounting firm.
Applicability and sanctions
While most tax watchdogs still rely on users to report their crypto transactions and holdings, the Colombian tax authority has some sources that can help them detect cryptocurrency tax evasion. Junco said DIAN is immersed in different information exchanges with other countries, which provide the names of citizens who should report crypto-related taxes. Junco said:
And what we do is review the material element against the tax return, whether or not there is room for inaccuracy, fraud, or whether it is current.
Penalties for not declaring cryptocurrency taxes in Colombia amount to double the funds not included in the tax declaration. Colombia has collected $1 billion over the past three years in taxes related to the digital economy, according to Junco, which has urged taxpayers to declare their cryptocurrency holdings.
The authority had previously announced a series of actions aimed at tightening control over the use of cryptocurrency in order to detect tax evasion more quickly.
What do you think of DIAN’s position on the taxation of cryptos in Colombia? Tell us in the comments section below.
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Colombian Tax Authority Warns Of Consequences Of Not Reporting Crypto-Related Taxes Bitcoin Taxes News
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