COLOMBIA Trends and Developments Contributed by: Gabriela Mancero, Daniel Peña, Maria Fernanda González and Andrea Sánchez Gallardo, Peña Mancero Abogados
• crypto-assets are not currency, as the only monetary and account unit that constitutes a legal tender and means of payment with unlimited release power is the Colombian peso, issued by the Central Bank of Colombia (bills and coins); • crypto-assets do not constitute money to be used for legal purposes; • crypto-assets are not currencies, since they have not been recognised as such by any international monetary authority nor are they supported by central banks; • crypto-assets do not constitute cash or cash equivalent; • there is no obligation to receive crypto-assets as a means of payment; • crypto-assets are not financial assets or investment properties in accounting terms; and • crypto-assets are not securities, so referring to them as such – and their assimilation – should be avoided. The above characteristics have been consist- ently endorsed across different Colombian gov- ernment documents and reflect an interpretation of intangibles that is always based on the tradi- tional notions of assets. Crypto-assets have been defined in Colombia as intangible assets and therefore are likely to con- tribute to the capital of corporations, provided that (i) they comply with accounting laws and secondary rules and legal regulations; and (ii) that the partners approve their appraisal. Based on these points, the Colombian government expressly affirmed a change in its doctrine, con- firming that shareholders can contribute crypto- assets in the form of a contribution in kind. The foregoing, subject to a series of requirements and recommendations, opens the possibility of
incorporating crypto-assets as part of the incor- poration of companies in Colombia. Colombian residents who have crypto-assets as part of their assets must declare them in their annual income tax returns. The value that must be declared is their equity value, either as an intangible asset (investment) or as an inventory. On the accounting side, it is recommended that a separate unit of account be created for the rec- ognition, measurement and disclosure of trans- actions and other events or occurrences that are related to cryptocurrencies, which could be called “crypto-assets” or “virtual assets”. If crypto-assets are traded in a foreign currency, the value of the assets in the foreign currency is estimated in the national currency at the time of their initial recognition at the official exchange rate, less any credits or payments measured at the same official exchange rate. Colombian residents who have equipment, resources and work that are integrated with cryp- to-mining activity, allowing them to obtain virtual currencies in exchange for services provided via the network and/or by way of commissions, receive taxable income in Colombia by virtue of the aforementioned criteria. Likewise, resident individuals and national companies are taxed not only on their income from national sources but also on that from foreign sources, as well as on their domestic and foreign assets. From the point of view of equity, as long as crypto-coins correspond to intangible assets capable of being valued, they form part of the equity and can lead to (presumptive) income being obtained. For instance, the purchase and sale of real estate via payment made through crypto-assets repre- sents the exchange of an asset that will be paid
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