The proposed tax rates were set at 5% for assets declared by the conclusion of March 2024, 10% from April until the end of June 2024, and 15% from July to the end of September.
Under the leadership of President Javier Milei, the Argentine government has made a significant adjustment to its ambitious reform package by withdrawing the option to legalize crypto holdings for individuals with overdue tax declarations.
Reported by Argentine tech-focused outlet iProUP on January 27th, this decision is part of the Law of Bases and Starting Points for the Freedom of Argentines, an extensive legislative package aimed at advancing Milei’s policy agenda.
The removed clause from the bill concerned asset regularization, proposing a one-time tax on various previously undeclared assets, including cryptocurrencies, real estate, personal property, stocks, and securities.
The proposed tax rates were 5% for assets declared by the end of March 2024, 10% from April to the end of June 2024, and 15% from July to the end of September.
Minister of the Interior Guillermo Francos made the decision to eliminate the asset regularization component from the bill, citing concerns that it would hinder the progress of the broader legislative initiative in parliament.
This change follows earlier government promises in December 2023, including the potential allowance of Bitcoin’s use in the country through a decree, which has yet to materialize.
The “Bases for the Reconstruction of the Argentine Economy” decree passed in December 2023 hinted at potential support for cryptocurrencies by allowing debtors to pay in currencies not recognized as legal tender in Argentina.
Javier Milei, who won the 2023 presidential election in Argentina, addressed the country’s persistent and rising inflation. While he previously expressed positive sentiments about Bitcoin as a means of returning monetary control to the private sector, he has not publicly addressed digital assets since taking office in December 2023.
In January, Milei pledged not to legally oppose provincial authorities’ efforts to create local currencies, responding to the Governor of La Rioja province’s announcement of a separate currency after Milei devalued the Argentine peso by 50% upon assuming office. This decision reflects a broader stance on allowing local autonomy in monetary policy.
