Argentina has recently released the rules that will govern the previously approved legislative package affecting the inclusion of cryptocurrency and other undeclared assets in the country’s tax system. The benefits will only be available to taxpayers who hold their assets in registered VASPs. These taxpayers will be exempt from taxes for up to $100,000 held in crypto.
Argentina Clarifies Reach of Cryptocurrency Legalization Opportunity
The government of Argentina has defined the reach and scope that the fiscal chapter of the recently passed Omnibus Law will have on undeclared goods and assets, including cryptocurrency. Now, Argentines can include undeclared cryptocurrency assets valued at under $100,000 as part of their holdings and pay zero taxes for this, following some key rules.
For example, to enjoy this benefit, the cryptocurrency that will be declared has to be held in nationally approved Virtual Assets Service Providers (VASPs). For this, these exchanges will have to be previously registered in the VASP registry launched in June by the National Securities Commission (CNV), the securities watchdog in the country.
While many international exchanges are still unregistered, the rules contemplate funds held in these to be transferred to a registered exchange previously to receive the benefits contemplated in this law.
Lusi Caputo, the Minister of Economy of Argentina, explained the reach of this rule. On X, he stated:
It is a zero rate for amounts greater than $100,000, as long as you enter it into the Argentine financial system and do not withdraw it until 2026, or allocate it to certain types of investments to be defined by the Executive Branch.
However, this does not mean that cryptocurrencies will not pay certain taxes after being declared. After entering the Argentine financial system, holders of these assets will have to pay personal goods, earnings taxes, and other tributes where applicable. Taxpayers will have until March 31 to declare their crypto under the conditions of this law.
Source: Bitcoin
