Should cryptocurrencies be included in the tax return? This is what an expert says

In recent years, Technological advances have allowed for more alternatives to be added to carry out operations in the financial field. Among them are digital currencies, which have been gaining popularity among investors.

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Since it is a type of financial asset, one of the questions that usually revolves around its operation is whether its management involves the payment of some taxes. If you are one of the more than five million Colombians who currently carry out operations with cryptocurrencies, Here we resolve your tax doubts.

According to Andrés Gómez, Country Manager in Colombia of the fintech CryptoMKT, There are two key considerations to keep in mind regarding this topic.

The first of them is associated with the income tax return. According to the expert, profits obtained through the purchase and sale of cryptocurrencies in Colombia are subject to this tax. “This means that if a person or company makes a profit from the sale of virtual assets, these will have to be declared as income and will be subject to the corresponding income tax rate.”he clarified.

Regarding this tax, Gómez also mentions that it is important to understand that, although cryptocurrencies are not recognized as legal currency in the country, these digital currencies are considered assets.

In that order of ideas, “People residing in Colombia who have a balance of cryptocurrencies in their digital wallets or in their accounts on exchange platforms must count them as part of their assets when filing their income tax return.”

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The second, for its part, is related to the Value Added Tax (VAT)In this case, although cryptocurrencies are not subject to this tax, if an organization sells products or services and accepts these digital currencies as part or form of payment, that billing will be subject to payment of the tax.

Along the same lines, the expert recalls that it is essential stay informed about current laws and regulations to comply with tax obligations, even more so if at any time cryptocurrencies have been received as a form of payment.

(See: Digital wallets gain ground in financial inclusion in Colombia)

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