Venezuela Issues New Order for Crypto Operators to Pay Taxes In Cryptocurrencies

Just a few days back, the Venezuelan government has published a new Decree No. 3,719 which requires the crypto operating taxpayers to pay their taxes in the respective digital currencies. Similarly, the decree notes that operators of foreign currencies should also pay their taxes in the respective currencies.

Amidst the ongoing economic sanction by the U.S. government, Venezuela’s national cryptocurrency Bolivar has undergone a significant devaluation. As a result, the local citizens have shifted towards adopting foreign currencies or cryptocurrencies.

Looking to this shift, the Venezuelan government led by President Nicolas Maduro has recently published the decree asking crypto operators to pay taxes in the same digital currencies and not in Bolivar.

The decree states that the Venezuelan people are currently facing a fierce war waged by internal and external factors that pursue the deterioration of the economy, which is why it is necessary to adopt sufficient measures to ensure the strengthening of the current fiscal regime.”

The only two exemptions included in the decree include transactions of securities traded on a stock exchange” and the export of goods and services, carried out by public bodies or entities”. However, the decree also notes that the tax returns shall be made in the “national currency” i.e. Bolivars. This is clearly an attempt from the government to stop its people moving away from the use of Bolivars.

The Maracaibo Municipality in Venezuelas Zulia State announced using the “Petro” for business tax calculations. However, this announcement created confusion among the citizens who believed that tax payments need to be made in Petro.

However, this week, the intendant of Servicio Desconcentrado de Administración Tributaria (Sedemat), Jean Carlos Martínez, clarified to Noticia al Dia publication that taxpayers will not be charged taxes in Petros.

Clarifying on this matter, Martinez said: “We are using the value of the petro as a reference unit to be able to determine the minimum tax, since the ordinance of the current economic unit is still stipulated in percentages of gross income. If someone had transactions in petro, bitcoin or other currency, [they] should declare their income according to the currency that [they] manage.”

He further added that apart from using Petro as a cryptocurrency, it can also be used as a unit of account that translates into 9,000 sovereign bolivars, which will be used in passport procedures or current salaries.”