The Argentine government, led by President Javier Milei, has decided to remove tax sections for cryptocurrencies from the omnibus bill submitted to Congress.
Argentine Government Removes Crypto Taxes from Omnibus Law
This bill had previously allowed taxpayers to declare ownership of certain previously undeclared assets, including cryptocurrencies, thereby reducing the payments and fees associated with this task.
The omnibus bill, officially called the “Law of Foundations and Starting Points for the Freedom of Argentines,” is designed to advance reforms in a variety of areas.
One of these reforms was to give President Milei legislative authority, allowing him to bypass Congress and take direct action in various areas.
Interior Minister Guillermo Francos stated that the decision to withdraw these proposals was due to the lack of consensus in Congress regarding this part of the bill. Francos said:
“The proposal aims to create freedom for economic development. It was very important to get this out quickly. The tax part was smaller and delayed its handling.”
The tax-related part of the bill would allow Argentine citizens to declare that they own previously undeclared assets, including cryptocurrencies.
The first $100,000 of these assets would be taxed at 0%, while the remaining undeclared assets would be taxed at up to 15%.
Mere possession of cryptocurrency does not result in a tax liability in Argentina. However, according to Marcos Zocaro, an Argentinian economist, selling cryptocurrency and making a profit from that sale is considered a taxable event.
Despite this, Argentine Tax watchdog AFIP recognizes cryptocurrencies as a financial asset. Therefore, they are subject to a tax percentage that varies depending on where the assets are located. The tax base is determined according to the latest market value calculated on December 31 of each year.
*This is not investment advice.