The tax hell of cryptocurrencies in Mexico: my personal nightmare

By: A desperate investor

1 oct 2024

What a mess I've gotten myself into! I've been investing in cryptos for years and now it turns out that the SAT is breathing down my neck. If you're like me, caught between the excitement of profits and the fear of the Mexican tax authorities, this will interest you.

The SAT and its convenient ambiguity

The SAT considers our beloved cryptos as "virtual assets", a label that allows them to dip into our virtual pockets whenever it suits them. It's absurd that there is no clear regulation, yet they have a well-defined way of charging us. Typical of Mexico: first they charge you and then (maybe) they regulate.

The Inevitable Bite

Is ISR on your Bitcoin gains? Of course! While the government does not recognize cryptocurrencies as legitimate money, it certainly charges you the difference between what you paid and what you earned. And be careful with VAT, as technically it doesn't apply, but I've seen cases where the SAT interprets it at will depending on who you are.

My personal experience is a disaster

I have tried to keep track of my trades, but it's a mess. How am I supposed to document every swap I make between tokens? And what about the NFTs I bought? Last year I ended up overpaying just out of fear of an audit.

The "specialists" charge you a fortune for advice, but even they are not clear on the situation. The other day I consulted with three different accountants and got three different answers. I paid for consultations only to remain just as confused!

Benefits of paying?

They tell you that complying gives you "peace of mind", but the truth is that you are just avoiding getting in trouble. There are no real incentives to declare your crypto gains, only the threat of absurd fines if you get caught.

The reality of the market

Don't expect coherence from the Mexican tax system. While politicians debate whether they understand what a blockchain is, we remain in fiscal limbo. Many investors prefer to keep their operations on foreign platforms and pray that the SAT doesn't cross-check information.

Do you want to enter this world? Go ahead, but be prepared to add tax headaches to the usual market volatility. In this environment of uncertainty, everyone must find their own balance between compliance and financial survival.

#CriptomonedasMexico #Cryptocurrency Taxes #SATCripto #BitcoinMexico #EthereumMexico