Citizens would have to pay 13% for each purchase of bitcoin and cryptocurrencies. Profits from speculative sales would get taxed at 15%.
In Costa Rica, purchasing bitcoin (BTC) or other cryptocurrencies could become a tax problem. This problem is because of the Costa Rican General Directorate of Taxation and their proposal to approve the gathering of at least 13% value-added tax. This amount would serve to purchase Bitcoin.
The government officials would also be providing a 15% tax for earnings with cryptocurrencies, which come to fruition when selling above the purchase prices on exchanges, according to local media La Nación.
Taxation, as the institution is commonly known, views cryptocurrencies as assets without physical representation. This appreciation of cryptocurrencies appeared because of a technical note made by the Central Bank of Costa Rica.
The entity went on the subject detailing that cryptocurrencies cannot get considered a currency in the legal sense because they do not comply with the characteristics of the legal tender coins.
In this regard, the general director of Taxation, Carlos Vargas, highlighted that if cryptocurrencies are assets, they should be subject to taxation like any other current asset.
Vargas added in an interview with the Costa Rican media that, so far, this possible resolution has only been on a discussion by the Union of Chambers and Associations of the Private Business Sector (Uccaep), which is an entity that brings together almost all economic interest groups in the country. Then it would now come to public consultation for the approval of this regulation.
Vargas showed more empathy regarding the possibility that Costa Ricans could start paying these taxes with their cryptocurrencies and said that Bitcoin is not a currency but an asset, not a tangible asset, but it is a good asset.
Bitcoin Regulation, Pending task in Costa Rica
The Costa Rican government’s relationship with bitcoin has been quite distant. Especially when compared to other countries in the Latin American region. More if it gets compared with El Salvador, whose adoption of cryptocurrency as legal tender took effect in September of this year.
In the eyes of Costa Ricans, it would be a positive move following in El Salvador’s footsteps. Although local authorities already gave no sign that they are even considering that scenario, a query from the firm Sherlock Communications determined in August of this year that the citizens of Costa Rica viewed bitcoin with good eyes.
On the other hand, the Central Bank’s president Rodrigo Cubero clarified and said they do not see the use of bitcoin to pay taxes as a viable activity. Meanwhile, according to his words, the institution he heads maintains a position of vigilant tolerance.
In addition, the regulatory issue took at a leisurely pace. Cubero himself said that the regulation of bitcoin would meet its approval at the right moment.
By: Jenson Nuñez
