Peru cryptocurrency regulation: Tax treatment of crypto coins

Many companies are using cryptocurrencies for their transactions – and the trend is increasing. The legislator in Peru has therefore looked at the tax treatment of cryptocurrencies and set a tax rate of up to 30 percent, for example on profits from sales or futures transactions. The Peruvian Ecovis experts know the tax details.

It is evident that since the 2008 crisis, there has been a drastic increase in the use of crypto coins as international exchange currency and as a significant element in global economic operations. As a result, tax regulators have been unable to ignore the new challenges presented by cryptocurrencies and it is relevant to ask how tax laws should treat crypto coins as assets and the transactions that are carried out with them, both inside and outside the country.

Crypto coins are an asset used in a decentralised network of users, who through blockchain technology and cryptography, can freely transfer values without the need for a central intermediary who registers the operations. By 2021, according to OECD estimates, there were approximately 8,257 cryptocurrencies whose total market value amounted to USD one trillion.

We can advise you on all tax issues relating to your transactions with crypto assets.

Gary Salazar Paz, Partner, ECOVIS PERÚ, Lima City, Peru

Taxation of crypto coins

Due to the variety of crypto coins in existence, the main question is whether they can be treated in the same way as securities or traditional currency exchange operations. Only a few countries that have used Bitcoin as a general set of crypto assets can be used as a reference point, which is problematic.

In Peru, the legislator has decided not to tax cryptocurrencies as assets or securities, as they are digital tokens. Instead, it has chosen to tax the income that these transactions can generate. This means that any natural or legal person who generates profits from the sale of cryptocurrencies, shares, futures and any other value inside or outside Peru is obliged to pay the tax (the tax rate will range from 5% – 30% depending on the specific case).

For further information please contact:

Gary Salazar Paz, Partner, ECOVIS PERÚ, Lima City, Peru
Email: gary.salazar@ecovis.com.pe