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The Chilean tax office requires declared encrypted profits

The Servicio de Impuestos Internos (SII), the Chilean tax agency, is now implementing income taxes on profits made from the sale of cryptocurrencies.

Bitcoin diary cited local sales points which report that the SII form 22 will include a new section for other income from companies that do not declare their actual income on the basis of certain provisions of the country's tax code. Although not explicitly mentioning cryptocurrencies, the SII had declared at the end of last year that the new section is earmarked for income from digital assets.

A letter of May 2018 from the Director of the SII stated that cryptocurrencies were not subject to value added tax, because they fell within the category of exempt intangible assets, but that the agency would require the registration of cryptocurrency enterprises.

Chilean banks and cryptocurrency exchanges have been in disagreement, with banks declaring the inability of trade to comply with regulations requiring disclosure of personal information by those conducting cryptocurrency transactions. Bank accounts for these exchanges were closed, prompting trade to file a complaint.

Last April, the country's anti-monopoly court ordered banks to keep bank accounts open while a final judicial decision was pending. This was stated by the Court of Appeals in July, but later the Supreme Court affirmed that the banks had the right to close the accounts. Even so, the anti-monopoly court has ratified its decision to keep the accounts open in the meantime.

The country still has to define the legal status of cryptocurrencies. Last month, Finance Minister Felipe Larrain said his ministry was in coordination with the Central Bank of Chile and the Financial Stability Board in creating a regulatory framework. He also said that the creation of regulations would help to normalize the situation between banks and cryptocurrency companies.

Two banks in neighboring Brazil were forced to reopen the accounts of the Bitcoin Max cryptocurrency exchange, under penalty of fines for abusive conduct, in which the banks had not issued notifications before closing the accounts.

Note: Tokens on the Bitcoin Core (segwit) chain are called BTC coins. Bitcoin Satoshi Vision (BSV) is today the only implementation of Bitcoin following the original whitepaper of Satoshi Nakamoto for Peer to Peer Electronic Cash. Bitcoin BSV is the only major public blockchain that maintains the original Bitcoin vision as fast and frictionless electronic money.
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