Friday, December 3

Mexico wants to impose 20% tax on bitcoin transactions

The Taxpayer Defense Attorney (PRODECON) in Mexico declared that cryptocurrencies should have an Income Tax (ISR) of 20%. This policy would force Mexicans to pay that percentage on 20% of any transaction made with bitcoin or other cryptocurrencies.

The release It was issued by the body in a report it made on cryptocurrencies on November 5. In the published document, PRODECON maintains that operations with these Assets would have to comply with the provisions of article 126 of the Income Tax Law.

This postulate of the Law requires the payment of a 20% tax rate. on the total amount of an operation. Currently this parameter applies to the alienation – sale, assignment or donation – of assets such as real estate. Said value must be retained by the acquirer, that is, the buyer. It would apply even when no fiat deposit was made when exchanging cryptocurrencies.

PRODECON taxpayers want to add to cryptocurrencies in Mexico Law so that they pay taxes. Source: Twitter.

PRODECON is a decentralized public body that provides guidance, advice, research and legal defense in tax matters. Its services are aimed at both federal tax authorities and taxpayers. Because, tries to give regulatory legal ground to the use of cryptocurrencies in Mexico.

The 20% tax on cryptocurrencies would apply to operations greater than 227 thousand pesos in Mexico

Only those who carry out transactions of less than 227 thousand Mexican pesos could be exempt from the tax – that is, around 11 thousand dollars– or purchasers residing outside of Mexico. In any of these cases, the documentation that proves it should be presented within a maximum margin of fifteen days after the cryptocurrency operation.

Anyway, it is worth clarifying that, This would only happen if cryptocurrencies are declared as goods within this Law. At the moment, there is no type of tax regime that requires paying taxes for transactions of these assets, such as bitcoin.

Currently, several exchanges – platforms to buy and sell cryptocurrencies – have landed in Mexico, which supposes an exponential growth in the country. Some of them are Buenbit and Letsbit. In addition, another called OSL recently announced that Mexicans will be able to exchange bitcoin without commissions.

So far, as CriptoNoticias has reported, the Securities Commission does not allow banks to operate bitcoin in Mexico, since cryptocurrencies are not recognized by the State. That is why Mexicans turn to unbanked platforms to buy, sell and store these assets.

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