Mexican taxpayers must report their income in crypto

The Tax Administration Service (SAT) of Mexico obliges the taxpayers of the country to report any activity that generates dividends and although the Mexican laws do not specify cryptocurrencies, they must declare any income that is accrued.

The clarification was made known by Juan Ignacio River, member of the College of Public Accountants of Mexico in the local newspaper El Economista, stating that: “The Income Tax Law (ISR) establishes that any increase in assets that a taxpayer could have.”

River also reported that despite the fact that Mexican laws do not specify the handling of cryptocurrencies “we should not forget about tax obligations.”

Lack of fiscal authority

Given the deep lack of fiscal authority in the Latin American region, many doubts have arisen regarding the proper handling that should be given to cryptocurrencies, River recommended that taxpayers keep an accounting and control in order for them to be declared before the SAT.

“You also have to remember that depending on the regime where you pay taxes, you must also make your provisional payments, which is not mandatory in all cases. But in all of them you definitely have to submit your annual return,” River reported.

K. Villarroel

Source: cointelegraph