The Income Law for Cryptocurrencies in Chile: Regulations and Applications for BNB and Buda.com
In Chile, the use and trading of cryptocurrencies such as Binance Coin (**BNB**) and platforms like **Buda.com** have grown considerably in recent years. This has led the **Internal Revenue Service (SII)** to establish specific criteria for the taxation of these digital assets, under the framework of the Income Tax Law.
Legal Framework for Cryptocurrencies
1. **Tax Classification**
The SII considers cryptocurrencies as **digital or virtual assets**. This classification implies that transactions made with cryptocurrencies are not treated as monetary operations but as the exchange or sale of digital goods.
2. **Income Tax**
The profits obtained from the buying and selling of cryptocurrencies are subject to the **Income Tax**, depending on the type of taxpayer and the nature of the operation:
- **Natural persons:** If transactions with cryptocurrencies are made occasionally, the profits are subject to the **Complementary Global Tax**.
- **Companies or habitual taxpayers:** Profits are considered taxable income for the **First Category Tax**.
3. **Determination of Profits**
The taxable gain corresponds to the difference between the acquisition price and the sale price of the cryptocurrency, expressed in Chilean pesos. For this, it is necessary to keep a detailed record of the operations carried out.
Applications in the Use of BNB and Buda.com
Binance Coin (BNB)
The use of BNB in transactions on platforms like Binance generates tax implications:
- If BNB is used as a means of payment, the transaction must be registered with its equivalent value in pesos at the time of the exchange.
- The profits obtained from the appreciation of BNB are also subject to the mentioned tax.
### **Buda.com**
Buda.com, as one of the leading cryptocurrency trading platforms in Chile, provides annual reports to help its users comply with their tax obligations. These tools facilitate:
- The recording of transactions.
- The conversion of cryptocurrency values to Chilean pesos for tax declaration.
- The identification of capital gains or losses.
Tax Obligations
Taxpayers operating with cryptocurrencies must:
1. **Declare operations:** Include the income obtained in your annual tax return (Form 22).
2. **Keep clear records:** Document acquisition prices, dates, and sale values.
3. **Report occasional income:** If the income does not correspond to a habitual activity, it must be reported as non-habitual income.
Tax Considerations
- **Tax rate:** The rate varies according to the type of taxpayer. Natural persons pay according to their income bracket, while companies are subject to the First Category Tax rate.
- **Cryptocurrencies abroad:** Transactions made on exchanges outside of Chile are also subject to taxation, and taxpayers must report on the assets held on international platforms.
Conclusion
The taxation of cryptocurrencies in Chile, regulated by the Income Tax Law, has made significant strides towards the formalization of this market. Assets such as **BNB** and platforms like **Buda.com** have shown that the adoption of cryptocurrencies can occur within a transparent and organized legal framework.
It is crucial for users to understand their tax obligations to avoid penalties and promote a reliable financial ecosystem. Tax compliance not only guarantees the legality of operations but also contributes to the sustainable development of cryptocurrencies in Chile.