In a recent legislative shift, Argentine President Javier Milei, together with Economy Minister Luis Caputo, has effectively canceled proposed tax exemptions for cryptocurrencies, altering a key component of the ‘Bases and Starting Points for the Freedom of Argentines’ bill. This decision marks a significant deviation from Argentina’s previously more favorable stance towards Bitcoin and digital assets.
Pro-Bitcoin President Milei Scraps Tax Exemptions
As initially reported by Argentine tech-focused outlet iProUP, the original draft of the bill included a clause for asset regularization, suggesting a one-time tax on various types of undeclared assets, including cryptocurrencies.
The bill’s tax provisions planned to allow Argentine citizens to disclose ownership of previously unreported assets, such as cryptocurrencies, with a 0% tax rate applied to the first $100,000 in value and a tax rate of up to 15% on the value of assets exceeding this threshold.
However, this part of the bill was removed following a decision made by President Milei and Minister Caputo on Friday. Guillermo Francos, the Minister of the Interior, explained that this was due to the delay it was causing in the legislative process.
Francos stated, “The fiscal part was minor and delayed the treatment of the initiative in the Parliament.” He further emphasized that “the Bases Law is aimed at generating freedom for economic development,” and that the removal of the tax section was crucial to expedite this objective.
The removal of cryptocurrency tax exemptions has reignited discussions about the current tax regime applicable to digital assets in Argentina. Marcos Zocaro, an accountant, clarified to iProUP, “The most important taxes that cover cryptocurrencies are Earnings and Personal Property.” Zocaro further elaborated, “In the case of an individual, no tax is paid by merely buying ‘digital currency’. What is taxed by Ganancias is the profit produced by the sale.”
Crypto Taxation In Argentina
Regarding the Personal Property Tax, Zocaro noted the ongoing debate on whether Bitcoin and cryptocurrencies are tax
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Author: Jake Simmons
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