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Businesses can now pay taxes with Bitcoin
It has been announced that Prospera, a privately run special economic development zone (ZEDE) located on the island of Roatan in Honduras, has adopted the crypto asset (virtual currency) Bitcoin (BTC) as the official unit for various financial transactions. Ta.
With this decision, Prospera will allow companies to use Bitcoin to value their assets and liabilities. Bitcoin will also be available for tax payments, as well as for measuring the market value of goods and services within the area and for various commercial transactions.
Prospera ZEDE’s Treasurer General, Jorge Colindres, expressed his strong belief in economic and financial freedom on X (Twitter). “People should be able to trade, manage their accounts and file their taxes in the currency of their choice,” he said.
Es también una herramienta para facilitar y expeditar la recaudación tributaria en @ProsperaZEDE #HondurasPorque permite que las empresas que operan en #BTC puedan llevar su contabilidad en dicha moneda sin necesidad de manejar tasas de cambio fluctuantes para reportar y pagar… https://t.co/pQZvts54iH
— Jorge Colindres (@GeorgeColindres) January 10, 2024
Helps facilitate and expedite taxation. Companies that do business in Bitcoin can do their accounting in that currency and smoothly file tax returns and taxes without having to worry about fluctuating exchange rates.
Corporations wishing to adopt Bitcoin as their unit of account for tax purposes will need to submit a notification to Prospera’s Tax Board with reference to a major approved cryptocurrency exchange such as Kraken or Coinbase.
However, due to technical constraints and external regulatory issues, it is currently not possible to carry out the “final Bitcoin tax procedure”, so the initial tax liability will be reported in US dollars or Honduran Lempira. Once the issue is resolved, tax payments will be transferred to Bitcoin.
connection:Bitcoin investment in El Salvador turns positive with unrealized gains of approximately 530 million yen
Prospera’s purpose and current status
In April 2022, Prospera announced that it would adopt Bitcoin as its legal currency. At the time, it specified exemption from capital gains tax, the possibility of using it in various financial transactions, and the possibility of issuing Bitcoin bonds.
Neighboring country El Salvador adopted BTC in September 2021, and according to the tracking site Nayibtracker, it currently holds 2,798 BTC, with unrealized gains of approximately $12.6 million as of January 10.
Founded in 2017 as a project managed by Honduras Próspera Inc, Prospera aims to position itself as an experiment in free markets and private governance. Office buildings, school buildings, condominium towers, and more are under construction, with the aim of making the city a financial hub of Central America, similar to Singapore.
Special economic zones are autonomous, set their own laws and tax systems, and residents and businesses can apply online and pay a fee to become residents. Calculating backward from the selection criteria for councilors, the estimated number of residents is believed to be less than 10,000.
According to Colindres, Prospera has grown to be the most competitive special economic zone in Latin America, attracting more than $100 million in investment and creating more than 3,000 jobs in three years.
Aquí una foto de la bella torre Duna que se alza en Próspera ZEDE y que ha dejado millones de dólares en pagos a proveedores y empleados en Roatán.#Honduras In the Latin America, las ZEDE, que en solo tres años han logrado atraer… pic.twitter.com/gV42xTNlsk
— Jorge Colindres (@GeorgeColindres) August 26, 2023
connection:El Salvador’s Bitcoin-backed bond “Volcano Bond” receives regulatory approval
The post What is Prospera, a private city in Honduras that has adopted Bitcoin as the official unit of financial transactions? appeared first on Our Bitcoin News.
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