Venezuelan government, foreign currencies and cryptocurrencies approved the new law on taxation of transactions with
With the “major financial transactions” law approved by the country’s National Assembly, up to 20% tax will be charged on transactions in foreign currencies other than the country’s national currency or its own cryptocurrency, the Petro.
Venezuelan Government to Tax Cryptocurrency Transactions
With the new law approved, the Venezuelan government will tax transactions and payments made in cryptocurrencies and foreign currencies.
The so-called “major financial transactions” tax aims to encourage the use of the country’s national currency, the bolivar, which has been depreciating significantly for years.
With the new tax law, all transactions with cryptocurrencies or foreign currencies will be taxed up to 20% without any lower limit. Which transaction will be taxed and how much will be determined by the type of transaction and whether it is done by individuals or companies.
The percentage to be paid will be announced after the National Assembly officially publishes the law, but it is estimated that it will start at 2.5% in the first place.
Significant Use of Cryptocurrency in Venezuela
Local economist Aaron Olmos thinks that with the addition of cryptocurrencies to the taxation law in the country, the importance of using these currencies for transfers and payments in the country has become clear.
Despite this, the majority of the reactions to the law in the country were due to the dollar. Approximately 65% of financial transactions in the country are made in US dollars.