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Argentina will eliminate taxes on crypto assets!

Thu 01 Feb 2024 ▪ 3 min of reading ▪ by Fenelon L.
Getting informed Crypto regulation

The Argentine government led by Javier Milei, known for his pro-Bitcoin stance, has just introduced a bill that eliminates the existing tax reporting options for cryptocurrencies.

Le gouvernement argentin de Javier Milei et la crypto dont Bitcoin

Argentina will no longer tax the ownership of Bitcoin and other cryptocurrencies

The new Argentine government led by President Javier Milei, known for his ultra-liberal and pro-Bitcoin positions, presents an ambitious bill to Parliament: the “Foundations and Starting Points Law for the Freedom of Argentinians”.

Carried by the Interior Minister Guillermo Francis, this bill aims to relax Argentine taxation in several areas. However, it excludes any mention of cryptocurrencies, thus preventing their tax declaration.

Until now, digital asset holders indeed could declare their holdings and pay a fixed advantageous tax: 0% under $100,000 and 15% above. This celebrated advantage disappears, sparking controversy.

Some criticize an unjustified tax treatment, contrary to Javier Milei’s displayed support for cryptocurrencies. Minister Guillermo Francis cites political disagreement on this specific point.

A strong political signal for the future of crypto

If the project is approved, owning cryptocurrencies will remain untaxed in Argentina, accountant Marcos Zocaro informs us. Only the capital gains made from selling will be taxed, below a certain threshold.

In the case of an individual, for the simple act of buying what the law calls digital currency, no tax is paid. What is taxed on profits, is the profit made from the sale and there is also a minimum below which no tax is to be paid“.

On the other hand, cross-border crypto transfers will remain taxed at 5 to 15%. An incentive measure to encourage the inflow of foreign crypto capital, according to experts.

Despite this major change, the government continues to actively support the sector. The project even allows for the declaration of cryptocurrencies without proof of origin.

Diana Mondino, Minister of Foreign Affairs, also reaffirmed on X that cryptocurrencies will have their place in Argentina under certain conditions.

Although imperfect, this bill thus reflects Javier Milei’s desire to make Argentina a welcoming land for the crypto ecosystem. A matter to be closely followed in Parliament in the coming weeks.

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Fenelon L. avatar
Fenelon L.

Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.