Argentinian Government Drafts Bill to Eliminate Crypto Tax Opportunities
The Argentinian government, led by pro-Bitcoin President Javier Milei, has introduced a bill titled “Law of Bases and Starting Points for the Freedom of Argentines” to parliament. The bill aims to reform personal tax, education, and justice administration laws in the country. However, it specifically excludes cryptocurrencies and other assets from the bill, effectively preventing holders from declaring ownership without paying the necessary fees.
Prior to this bill, holders of undeclared assets, including cryptocurrencies, could declare ownership and pay a fixed tax. Currently, citizens can declare ownership of undeclared assets, with the first $100,000 worth being tax-free and a 15% tax on the rest.
The decision to drop the crypto tax window was due to a lack of political support. However, the government has shown support for the crypto sector in other ways.
Crypto Tax Requirement for Holders
Argentina’s tax office recognizes cryptocurrencies as an asset class. Taxes vary depending on holding, sale, and location of the asset. According to accountant Marcos Zocaro, there is no tax on purchasing and holding cryptocurrencies unless they are sold for profit.
There have been discrepancies regarding crypto taxes as the Personal Property Law does not specifically mention them. However, it has been argued that taxes are due as they were imposed by the Treasury in 2022.
The bill also aims to allow taxpayers to legalize their digital asset holdings without requiring extensive documentation about their origin.
Hot Take: Argentina Drops Crypto Tax Opportunities
The Argentinian government’s decision to remove crypto tax opportunities for undeclared assets is a significant development in the country’s taxation system. While this move may disappoint some crypto holders, it reflects the government’s efforts to strengthen and reinvent the economy. President Javier Milei, known for his support of Bitcoin, has taken steps to improve crypto laws in Argentina. Although the tax window for cryptocurrencies has been closed, the government continues to show its support for the sector in other ways. It remains to be seen how these changes will impact the crypto landscape in Argentina.
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