A new crypto tax paradigm is brewing in Argentina, where two provinces have now approved crypto tax laws. This means that Argentinian citizens must disclose their cryptocurrency holdings and pay taxes based on the trades they do in the provinces of Tucuman and Cordoba. Indeed, cryptocurrencies have been grouped with all other international currencies and are therefore subject to tax.
Cryptocurrencies will be taxed in certain provinces of Argentina
Cryptocurrency taxes have arrived in Argentina, at least in some provinces. Now, users who trade and hold cryptocurrencies must disclose their income and pay taxes in at least two provinces: Cordoba and Tucuman. The reason behind this lies in a new regulation passed at the province level which states that cryptocurrencies will be taxed like other international currencies when traded.
This means that effectively, in these two provinces, cryptocurrencies are treated like other international currencies in accordance with the regulations. The province of Tucuman recently approved an amendment to article 223 of the law which states:
Purchase and sale of currency and government securities. The transactions of buying and selling digital currencies are included in this subsection.
Cordoba, another province that approved a similar resolution earlier this year, has also determined that cryptocurrency transactions will be taxed, but it extends this tax provision to people or businesses receiving cryptocurrency payments for their products. or services.
The increasingly popular cryptocurrency
The inclusion of cryptocurrencies within the scope of these laws is being considered in several countries around the world, due to the growing popularity of these instruments as an asset class and also as a method of payment. Governments are starting to realize that by not regulating these payments they are losing a lucrative source of revenue.
In fact, the government of Mexico has recommended taxing this type of transaction with a 20% fee. Cryptocurrencies started to gain momentum in Argentina after the government limited the number of dollars each citizen could buy each month. This was the breaking point for a country that was not known for its involvement in cryptocurrency, to take an interest in these new crypto tools that offered a savings alternative amid the aforementioned situation.
But it’s not just cryptocurrency payments that are successful in Argentina. Because of its cheap energy, the country has become an attractive choice for bitcoin mining companies like Bitfarms, which are already building a Bitcoin mega-mining farm to take advantage of the region’s affordable energy prices.
What do you think of the new cryptocurrency taxes in Argentina? Tell us in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, nor a recommendation or endorsement of any product, service or business. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, good or service mentioned in this article.