Citizens of Argentina may have to pay crypto taxes based on location
A new crypto tax paradigm is brewing in Argentina, where two provinces have passed crypto tax laws. This means that Argentine citizens must disclose their cryptocurrency holdings and pay taxes in accordance with the exchanges they carry out in the provinces of Tucumán and Córdoba. This is because cryptocurrencies have been bundled with all other international currencies and are therefore taxable.
Cryptocurrencies will be taxed in certain provinces of Argentina
Taxes on cryptocurrencies have reached Argentina, at least in certain provinces. Now, users who trade and own cryptocurrencies must disclose their earnings and pay taxes in at least two provinces: Córdoba and Tucumán. The reason behind this lies in a new regulation adopted at the provincial level that stipulates 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 according to the regulation. The province of Tucumán recently approved a reform to article 223 of the law that establishes:
“Sale of foreign currency and government securities. The operations of purchase and sale of digital currencies are included in this subsection ”.
Córdoba, another province that passed a similar resolution earlier this year, also determined that cryptocurrency transactions will be taxed, but extends this tax provision to individuals or companies that receive payments in cryptocurrencies for their products or services.
Increasingly popular cryptocurrency
The inclusion of cryptocurrencies in the scope of these laws is something that 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 payment method. Governments are beginning to realize that by failing to regulate these payments they are losing a lucrative source of income.
In fact, the Mexican government has recommended taxing these types of transactions with a 20% fee. Cryptocurrencies began to gain momentum in Argentina after the government put a limit on the amount of dollars that each citizen could buy monthly. This was the breaking point for a country that was not known for its participation in cryptocurrencies to be interested in these new cryptographic tools that provided a savings alternative in the middle of the aforementioned situation.
But not only payments with cryptocurrencies are succeeding in Argentina. Due to its cheap energy, the country has become an interesting option for bitcoin mining companies like Bitfarms, which is already building a mega Bitcoin mining farm to take advantage of affordable energy rates in the area.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.