Venezuelan government will collect upto 20% tax from crypto transactions

A new bill in Venezuela aimed to collect up to 20% taxes from the citizens, which are using crypto or foreign currencies to do payments.

Venezuela is a crypto and blockchain technology-friendly country. In the past 2017-2018, the country faced high inflation rates and that forced the country to adopt the advanced tools to boost the economy of the country. Right now crypto is legal in Venezuela for the citizens to trade but under the prohibition not to use crypto as legal tender, however, the country is looking to get a pass to use crypto in payment systems. 

The National Assembly of Venezuela recently discussed the new rules on crypto tax provisions. The main aim of the discussion was to focus on the high amount of transactions in crypto assets. 

Under the newly drafted crypto tax bill, the country will impose up to 20% tax for the crypto traders to facilitate Transactions in Crypto or any of the foreign currencies. 

Reportedly the bill drafted for the same rule was approved in the held discussion on Thursday of last week. This new rule will apply to all institutions and individuals of the country.

On 20 January, this draft was filed. Draft bill criteria was aimed to keep the transactions away from crypto through the tax system. The minimum tax will be 2%, while the maximum will be 20% as per amount of funds.

This new bill is dedicated to supporting the sovereign fiat currency, which lost 70% value in the last year. 

“It is necessary to guarantee treatment at least equal to, or more favorable, to payments and transactions made in the national currency or cryptocurrencies or crypto assets issued by the Bolivarian Republic of Venezuela versus payments made in foreign currency,” bill noted

In October 2021, the Crypto community of Venezuela grabbed happiness with the news of largest airport to allow travelers to purchase airline tickets using bitcoin/crypto-based payment options. 

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