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Javier Milei led Argentine government has removed certain tax opportunities for cryptocurrencies from the omnibus bill presented to Congress. The omnibus bill facilitates taxpayers to declare previously undeclared assets (including cryptocurrencies) and reduces the current tax rate applied to them.
Crypto Clause Removed from Argentine Government’s Omnibus Bill
The Argentine government has removed a clause from the omnibus bill proposal presented to Congress this month that would have allowed taxpayers to declare various assets, including cryptocurrencies. The bill, titled “Foundations and Starting Points for the Freedom of Argentinians Act,” aims to advance reforms for various parties, including granting legislative powers to President Milei to bypass Congress and take direct action in various areas.
Interior Minister Guillermo Francos stated that the decision to remove certain clauses from the omnibus bill proposal was due to the inability to reach a consensus in Congress regarding this part of the bill. According to local sources, Francos commented, “The proposal aims to create freedom for economic development. It was very important for it to pass through Congress quickly. The tax aspect was a limited issue and will be addressed later, even if delayed.”
The tax aspect of the omnibus bill proposal allowed Argentine citizens to declare previously undeclared assets (including cryptocurrencies), with the first $100,000 being taxed at 0%, and undeclared assets above that amount up to 15% tax payment.
In Argentina, merely holding cryptocurrencies does not create a tax liability, but according to Argentine accountant Marcos Zocaro, selling cryptocurrencies and profiting from the sale is taxable.
Cryptocurrencies Currently Recognized as Financial Assets in Argentina
Currently, the Argentine Tax Authority AFIP recognizes cryptocurrencies as a financial asset, and therefore, they are subject to a variable tax percentage depending on the location of the assets. The tax base is determined according to the last market value calculated on December 31st each year.
The omnibus bill proposal is currently seeking consensus in Congress for approval and is undergoing significant changes. Previously, Milei had issued an emergency executive order that deregulated major sectors in Argentina and allowed rental agreements to be made in BTC.
