Argentina Excludes Crypto Tax Opportunities from Reform Bill

The Argentine government has removed opportunities for declaring crypto ownership from its omnibus “Law of Bases and Starting Points for the Freedom of Argentines” bill. Interior Minister Guillermo Francos said the crypto proposals lacked consensus in Congress, stating “The tax part was smaller and delayed treatment.” 

The original bill allowed citizens to declare previously undeclared assets, including crypto, paying 0% tax on the first $100,000 and up to 15% on remaining undeclared assets. In Argentina, merely holding crypto does not trigger taxes, but selling it for profit is a taxable event, says accountant Marcos Zocaro.

The tax authority AFIP recognizes cryptocurrencies as financial assets subject to annual capital gains taxes. The bill is undergoing changes to gain Congressional approval. President Javier Milei recently issued an executive order deregulating sectors of the economy, enabling bitcoin-denominated lease contracts.

Removing the crypto provisions aims to advance the larger reform package sought by Milei’s libertarian administration. The tax amnesty was a minor component lacking political backing. Despite this exclusion, Milei’s government is pushing bitcoin adoption as part of its free market economic vision.

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2024-01-31 03:16