Crypto market has been struggling for quite long but the situation regarding the adoption of cryptocurrency has been seeing little successes. Like previously, Ohio State started accepting Bitcoin (BTC) tax payments. Similarly, in a very recent, Venezuela has also taken measures to empower cryptocurrencies by allowing the use of cryptocurrencies for tax payments.
The Venezuelan government has published a decree to enforce the cryptocurrency tax payments. The decree No. 3,719 in the Gaceta Oficial edition No. 6,420 lays the rule that people who are associated with cryptocurrencies and foreign currencies are not supposed to pay taxes using the country’s national currency, bolivars. Instead, the decree states that people should be paying taxes by using the currencies they had chosen to operate in. Like if people use foreign currency then they must pay their taxes using the same foreign currency. Similar is the case with the cryptocurrencies. People using cryptocurrency must pay their tax while using the very same cryptocurrency.
Besides that, the decree also explains that due to several internal and external reasons, the economy of the country has deteriorated, therefore, resulting in the execution of several necessary steps to restore the balance. The Ministry of Popular Power of Economy and Finance is responsible for looking after the implementation of the decree. Apart from a few cases such as “the export of goods and services, carried out by public bodies or entities” and “transactions of securities traded on a stock exchange”, there is no exemption or relaxation for people of Venezuela.
Although the rules for payments of tax are straightforward, exact rates for crypto taxation have not been laid up till now. Certain organizational bodies of Venezuela will be coming into action for implementation of the decree. Like country’s tax and customs duties regulator (SENIAT) is expected to disclose the method for paying crypto taxes while SUDEBAN, a local banking sector regulator, will be forming a framework for banks and many other financial institutions.
Venezuelan president, Nicolas Maduro, has been promoting Petro for quite long. He was seen very optimistic with national cryptocurrency and it can be concluded from the decree that his government is all praising, in addition to Petro, the use of other cryptocurrencies.