As a result of a new law in Venezuela, some cryptocurrency transactions may be subject to a 20% tax

As a result of a new law in Venezuela

Following the government and parliament’s approval of a measure aimed at easing inflationary pressure on Venezuela’s ailing fiat bolivar, certain crypto and foreign currency transactions will be taxed at up to 20%. The changes were laid forth in a bill that was recently approved by the National Assembly. According to the draft legislation’s summary, the bill aims to “establish a tax on significant financial transactions” that assures “foreign currency transactions” as well as “cryptocurrencies or cryptoassets” are taxed at a rate “at least equal to, or higher than that paid in bolivars.” This, according to the document’s authors, will “increase the motivation and confidence in the usage of the national currency.” Criptonoticias reported that MPs adopted the bill on a second reading during an evening session of the assembly on Thursday, February 3. For “special taxpayers” who “use currencies other than those recognized by the state,” the bill creates a sliding tax rate. The rate will range from 2% to 20%, with the government having the authority to decide the ultimate rate in individual circumstances. People with incomes that the tax authority deems important to declare are referred to as “special taxpayers.” The bolivar has been playing second fiddle to the “USD and digital assets” in recent months, according to the same media site, as the Venezuelan currency has taken another thrashing at the hands of global inflationary pressures. The measure stipulates that tax rates for transactions in bolivars will range from 0% to 2%. (or presumably the state-run petro [PTR] cryptoasset). The rate is 2-8 percent for currencies and cryptoassets that are not issued by the government but function within the national banking system (the identity of these assets is unclear). However, the rate for financial transactions “taken out in dollars or cryptocurrencies outside the Venezuelan banking system” might range from 2% to 20%, according to the statement.