Argentine Government Drops Crypto Tax Opportunities From Omnibus Bill

The Argentine government removed crypto tax amnesty provisions from its economic reform bill due to lack of Congressional support.
Argentine Government Drops Crypto Tax Opportunities From Omnibus Bill

The Argentine government’s comprehensive “Law of Bases and Starting Points for the Freedom of Argentines” draft no longer includes provisions allowing for the declaration of cryptocurrency ownership. Congress was divided on the crypto ideas, according to Interior Minister Guillermo Francos, who added, “The tax part was smaller and delayed treatment.”

In the initial law, people could declare assets that they had previously failed to disclose, including cryptocurrency, and pay 0% tax on the first $100,000 and up to 15% tax on the remaining assets. According to accountant Marcos Zocaro, simply possessing cryptocurrency in Argentina does not result in taxes; however, selling it for a profit does.

Cryptocurrencies are recognized by the tax body AFIP as financial assets that are liable to annual capital gains taxes. To get Congressional approval, the bill is being modified. Recently, President Javier Milei issued an executive order deregulating certain sectors of the economy, allowing leasing contracts to be paid in bitcoin.

The goal of eliminating the crypto clauses is to further the broader reform package that Milei’s libertarian administration is pursuing. Tax amnesty was a small element with no political support. Milei’s government is promoting bitcoin adoption despite this exclusion since it supports a free market economy.

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