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Chile is to start taxing cryptocurrencies in April, when taxpayers pay their yearly income taxes, but it’s unclear at what rate. According to local media reports, the country’s revenue authority has included crypto assets in the Annual Income Tax Returns form, which will be declared as “other own income and/or third-party income from companies that declare their effective income.”
Investors to Pay Tax on Crypto Earnings
Chile exempted cryptocurrencies from Value Added Tax laws in 2018, labeling them “intangible assets” but investors will now be required to pay tax on earnings generated from crypto-related investments, Diario Bitcoin reported, quoting the country’s tax collector, Internal Revenue Service.
It is not clear at what rate the crypto tax will be levied, but individual income tax thresholds in the country averaged 39.38 percent during the 15 years to 2018, according to research website Tradingeconomics. Today, the rate stands at 35 percent.
Fernando Barraza, director of the revenue authority, said citizens who buy, sell or trade virtual currencies will have to register their enterprises by completing what are known as “tax-exempt invoices.” These invoices allow the Internal Revenue Service to monitor their operations. The article stated that the Chilean government had become interested in tracking cryptocurrency activities following a sharp rise in their use as “valid currencies to trade products and services.”
The move by the revenue collector to tax crypto assets is widely regarded by observers as a major step towards legitimizing the trade and use of virtual currencies in the south American country. Until now, the legal status of cryptocurrency in Chile has remained a matter of conjecture. The country does not recognize virtual currencies such as bitcoin as legal tender, but they are not banned either.
However, Chilean crypto exchanges have in the last year had running battles with commercial banks, who closed their accounts without explanation. A landmark ruling by the Supreme Court of Chile in December means banks can now close such accounts legally. In a case pitting state-owned Bancoestado against digital asset trading platform Orionx, the court ruled the bank was justified in closing the exchange’s accounts.
Judges said the bank acted in compliance with laws on money laundering and terrorist financing, a threat allegedly posed by censorship-resistant decentralized cryptocurrencies. The Supreme Court claimed that digital assets lack “physical manifestation” and “have no intrinsic value.” It also took issue with the fact that they are not controlled or issued by governments or companies.
Tax lawyer Patrício Bravo, representing the non-profit Bitcoin Chile, commented that the new crypto tax was an attempt by the Internal Revenue Service “to expand the tax structure as much as possible to cover all types of crypto assets.” Bravo, who was speaking to local news outlet Crypto Notidies, also noted that the tax may have been “due to the current lack in Chilean legislation of figures specifically designed for this type of instruments, which makes it difficult to generate more specific items.”
What do you think about Chile’s cryptocurrency tax? Let us know in the comments section below.
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The post Chile to Start Taxing Cryptocurrency Earnings in Second Quarter of 2019 appeared first on Bitcoin News.
Secretary of State Mike Pompeo will meet with North Korean representative Kim Yong Chol in Washington on Friday, as speculation continues over the possibility of a second meeting between President Trump and North Korean Leader Kim Jong Un, a U.S. official told Fox News on Thursday.
Gymboree Group Inc. will shut down its Gymboree and Crazy 8 clothing chains after declaring bankruptcy for a second time and failing to find a buyer for the stores, which have been hit hard by a decline in mall traffic.
The San Francisco-based company filed for Chapter 11 bankruptcy protection…
Snap Inc. Chief Financial Officer Tim Stone is resigning eight months after joining the social media company, sending shares tumbling in extended trading.
Stone’s departure isn’t related to any disagreement on the company’s accounting, strategy, financial or other practices, said the company —…
An Oregon-based company that specializes in robotic sex toys won an award from Las Vegas’ Consumer Electronics Show — only to have it taken back because the show’s organizers deemed the product “immoral, obscene, indecent (and) profane.”
BCH and BTC markets have begun the year with consolidation, with BCH bouncing between $ 150 and $ 175 and BTC trading within a $ 3,500 to $ 4,000 range on Bitstamp, and $ 3,700 to $ 4,300 on Bitfinex. In other market news, a bullish start to the year has seen ETH reclaim its position as the second largest cryptocurrency by market cap.
BCH Markets Cool After Closing 2018 on Record Volume
After producing the strongest week of trading activity on record two weeks ago, the BCH/USD markets have since retraced from the local high of roughly $ 220 and consolidated within a range between approximately $ 150 and $ 175. As of this writing, BCH is trading for $ 158.
When measuring against BTC, BCH price action has roughly followed the same trajectory, beginning the new year with consolidation following a retracement from the local top of 0.05 BTC posted during late December. BCH is currently trading for 0.0417 BTC.
Bitcoin cash is the fourth largest cryptocurrency by capitalization with a market cap of $ 2.86 billion, equating to a market dominance of nearly 2.2%.
BTC Consolidates Near $ 4,000
When looking at the daily charts, BTC has started the new year with tight consolidation in the upper $ 3,000 range, following a 30% rally during the second half of December 2018. As of this writing, BTC is trading for $ 3,800 on Bitstamp and $ 3,942 on Bitfinex, after establishing local support approximately $ 200 lower toward the end of 2018.
BTC currently has a market dominance of 51%, down from 55% as of mid-December, coinciding with a rise in the combined capitalization of all other markets from $ 45 billion on Dec. 16 to $ 64.2 billion today. BTC has a capitalization of $ 67.11 billion.
ETH Produces Bullish Start to 2019
ETH has rallied consistently since the middle of December when measuring against both USD and BTC, having gained nearly 90% over the dollar and 55% over BTC in just three weeks. After trading for just $ 83 and 0.026 BTC on Dec. 15, ETH is currently testing support at roughly $ 160 and 0.04 BTC.
The bullish momentum has also seen ETH reclaim the distinction of being the largest altcoin by market capitalization, following seven weeks in which XRP held second spot. ETH currently boasts a market cap of $ 15.93 billion and a dominance of 12%.
Ripple Grinds Sideways
After a week of bullish momentum leading up to Christmas, XRP/USD has since traded within a price range between roughly $ 0.33 and $ 0.37, with current prices consolidating at the support zone of XRP’s former all-time high posted during May 2018.
When measuring against BTC, XRP is testing support near 0.0001 BTC for the third time since September after producing a multi-month ascending wedge formation. Ripple is currently the third-largest cryptocurrency market with a capitalization of $ 14.79 billion and a market dominance of nearly 11.3%.
How do you expect the markets to perform during 2019? Share your thoughts in the comments section below!
Images courtesy of Shutterstock, Tradingview
Disclaimer: Price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”
The post Markets Update: BCH and BTC Consolidate, ETH Regains Second Spot appeared first on Bitcoin News.
More than two years after Britons voted to leave the European Union, the U.K.’s politicians still can’t agree on what kind of Brexit they want. Now more lawmakers are calling for a do-over, a second referendum that could potentially reverse the results of the first.
WSJ.com: What’s News Europe
The Los Angeles district attorney declined to file sexual assault charges against Steven Seagal for a second time,citing that the statute of limitations in the allegation had expired.
It was only months ago that the mere utterance of a second referendum would be palmed off by the bulk of Britain’s political class as wishful thinking by “remoaners” who voted to stay in the European Union.
CNN.com – RSS Channel – World
A second Canadian has been detained in China in a potential act of retribution that threatens to escalate the diplomatic dispute between Washington, Beijing and Ottawa following the arrest of a Chinese Huawei executive in Canada.
CNN.com – RSS Channel – World