Colombian Tax Authority warns people to declare crypto taxes

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Colombia’s Tax and Customs National Authority (DIAN) reminded taxpayers early this year to start registering their cryptocurrency-related taxes otherwise, they will be penalized. According to a report by Bloomberg on March 30, DIAN informed the public that ‘it can carry out verifications to determine the accuracy of the assets declared.’ They also mentioned that the taxpayers should declare all their economic events according to the Tax Statute and International Financial Reporting Standards (IFRS). 

What this means is that crypto-assets should be treated like any other financial asset regardless of the denomination that the tangible or intangible asset receives. If it meets the definition of asset stated in IFRS, it should be declared as income tax. 

In an interview with the local station Blu Radio held last February, the DIAN general director Lisandro Junco said ‘You have to pay taxes even if it is an element of the digital economy’ and that cryptocurrency assets are taxed the same as any other assets held by Colombian citizens.

Junco explained that DIAN is in cooperation with other countries to determine who is        not paying their crypto taxes correctly. These countries deliver the names of the citizens that should be paying their crypto-related tax. 

In a statement published by Bloomberg on March 30, Junco said that ‘what we do is review the substantial element against the tax return, whether or not there is a room for an inaccuracy, an evasion or if it is up to date.’ 

DIAN furthermore stated that all elements falling under the definition of assets should be declared according to the law. These assets include stocks, bonds and cryptocurrencies. BDO Colombia, a popular accounting firm, also stated in a report by on April 3 that cryptocurrency miners should declare their mining number since DIAN classifies mining earnings as income. 

The penalty for failing to declare cryptocurrency assets in Columbia would result in doubling the number of funds that are not included in the tax statement. In line with this, DIAN also announced in their PR statement published on January 28 that there would be a series of actions that are designed to control the usage of cryptocurrencies to help detect tax evasion by taxpayers. 

Details are yet to be disclosed, but DIAN mentioned in their PR statement that the agreement signed between Colombia and Finland would be the key to implementing the anti-money laundering and terrorism financial policies of the Colombian state since the agreement would allow a free flow of information between the institution of both countries.

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