Tax and Technology

S. 307Crypto-Assets: Income and Capital Gains Taxes

Alfredo Abregú Tipto

S. 3081. Introduction

Crypto-assets are a new technological and financial advancement that has been spreading rapidly across the world due to their particular characteristics. These characteristics include their decentralized nature (they are not issued or controlled by any government or central authority) and that they are carried out online without intermediaries.

Crypto-assets are used by individuals and corporations in many ways such as means of exchange for goods and services, as investment, to gain access to specific services, to raise funds, etc.

Due to their participation in a wide range of economic transactions, crypto-assets have aroused the concern of authorities, scholars, and international organizations about their tax implications. Even though several tax authorities have issued guidance and provisions regarding the taxation of crypto-assets, worldwide, they are still incipient.

One of the main concerns about their taxation is whether income derived from crypto-assets is subject to income tax or capital gains tax. This thesis will address this concern by focusing on payment, or exchange tokens which is the type of...