Chile will begin taxing cryptocurrencies in April when taxpayers pay their annual income taxes, but it is unclear at what rate. According to local media reports, the country’s tax authority has included crypto assets in the “Annual Income Tax Return” form, which is reported as “other own income and / or income of third parties from companies showing their actual income”.
Chile exempted cryptocurrencies from VAT legislation in 2018, calling it “intangible assets”. Investors will now be forced to pay proceeds from crypto-related assets, reports Diario Bitcoin, citing the country’s tax collector, Internal Revenue Service.
It is not clear how much the crypto tax will be levied, but the income tax thresholds in the country averaged 39.38 percent in the 15 years to 2018, according to the research website Tradingeconomics. Today, the rate is 35 percent.