Mexico Crypto Tax Laws

17/11/2022por Mentores

Since the tax administration does not have a position, most experts tend to view cryptoassets as intangible assets for tax purposes. In the absence of a specific legal provision for the testamentary succession of the ownership of cryptocurrencies, the general rules of succession of the Federal or State Civil Code apply. When filing taxes in Mexico, income tax (ISR) is a tax levied on a taxpayer`s income in the form of cash, benefits in kind, credit or services. The SRI of individuals for 2021 is based on a progressive rate that changes depending on the type of taxable income and can reach a maximum of 35%. For companies, the SRI rate is 30%. There is currently no specific method for reporting cryptocurrency income in Mexico, so your income must be reported as regular income in the SRI section of your tax forms. Investment advisors are individuals who, while not intermediaries in the securities market, ordinarily and professionally provide portfolio management services by making investment decisions on behalf and on behalf of others and by providing routine and professional investment advice, research and investment recommendations on an individual basis. In this context, if the cryptoasset is not considered a virtual asset under the FinTech Act, the nature of the asset may be a security within the meaning of the Securities Markets Act with which the investment advisor or fund manager could operate. According to the definition of the Fintech law, cryptocurrencies for tax purposes could be defined as (i) intangible assets or movable assets, (ii) and should not be considered money or currency. Taxpayers should also seek advice on how to calculate sales tax on purchases made with virtual currency or cryptocurrency, and how these sales can be reported to state tax authorities. In states that have not addressed tax issues arising from the use of virtual currency or cryptocurrency, taxpayers may want to consider the state`s approach to taxing other types of currency or other intangible assets and whether or not the state complies with the federal tax treatment of convertible virtual currency. Washington does not tax purchases of cryptocurrency such as bitcoin and treats purchases of taxable goods or services made with cryptocurrency as taxable transactions such as cash or other counterparties. Under the Financial Crimes Enforcement Network (FinCEN), crypto miners are considered money transmitters, so they may be subject to the laws governing this activity.

In Israel, for example, crypto mining is treated as a business and is subject to corporate income tax. Regulatory uncertainty remains in India and elsewhere, although Canada and the United States are relatively supportive of cryptocurrency mining. It is not surprising that the Cayman Islands are on this list. The Cayman Islands have long been known as a tax haven for businesses and investors outside the crypto market, and crypto is no exception to their lax tax laws. Since cryptocurrencies are considered intangible property from a tax perspective, this is considered barter and not payment when you spend cryptocurrencies on goods and services. Thus, although goods or services may have a Goods and Services Tax (GST), the payment coin or token will not. As an intangible asset, all transactions involving cryptoassets should include VAT, except in certain situations where certain exceptions may apply. Any profit from the purchase and sale of cryptoassets should be subject to a 30% corporate income tax. In the case of individuals, they may be subject to income tax of 1.92 to 35 per cent, or in some cases exempt, depending on their income. Additional regulations have been enacted under the FinTech law, but none of them have expanded the regulatory and tax framework for virtual assets as cryptocurrencies have been identified for Mexican legal purposes.