Bitcoin may now be used to determine the market value of goods and services in the region.
Bitcoin (BTC) has scored yet another big win in a special economic zone in Roatan, Honduras. Barely two years after adopting the cryptocurrency as legal tender, it has now also officially recognized it as a unit of account. That is, Bitcoin may now be used to determine the market value of goods and services.
According to the acting manager of Próspera’s ZEDE (Zone for Employment and Economic Development), Jorge Colindres, the move is an attempt to bring more financial freedom to residents of the region. Colindres, who is also a tax commissioner, shared this in a recent X post. He also mentioned that businesses within the Próspera zone stand to benefit from the development as well. The post reads:
“At @ProsperaZEDE we believe in the right to financial freedom and monetary freedom. People should be free to carry out transactions, do their accounting and report taxes in the currency of their free choice.”
Entities to File a Notice of Interest in Bitcoin
Colindres also addressed the issue of tax liabilities of entities that choose Bitcoin as their unit of account. According to the commissioner, a “Final BTC Tax Payment Procedure” is not yet available. He noted that there are technicalities with its eGovernance system, at the time, that need taking care of. That is not to mention other issues bordering on external regulations.
However, pending the time those issues will be resolved, Colindres says that such entities that have made BTC their preference will see their tax liabilities determined using BTC. He added that this will be for internal accounting purposes only, but will be escalated to Próspera ZEDE in United States dollars or the Honduras lempira. Once resolved, entities may then report tax liabilities and even pay the corresponding tax dues to Próspera ZEDE in BTC.
Furthermore, Colindres has advised those interested in making BTC their unit of account to file a notice with the commission. They must do so within 30 days of the relevant tax period. The notice must also include a reference to any approved cryptocurrency exchange, such as Coinbase or Kraken.
It might be worth noting that the Central Bank of Honduras denied reports of Bitcoin being approved as legal tender.