The omnibus bill, officially known as the “Law of Foundations and Starting Points for the Freedom of Argentines,” previously allowed taxpayers to declare ownership of certain undisclosed assets, including cryptocurrencies. This provision aimed to reduce associated payments and fees. The bill encompassed a range of reforms designed to advance various areas, and one significant aspect was granting President Milei legislative authority, enabling him to take direct action in different domains without Congress involvement.
However, Interior Minister Guillermo Francos revealed the withdrawal of these proposals due to a lack of consensus in Congress, particularly concerning the tax-related segment of the bill. Francos emphasized the bill’s broader objective of fostering economic development and the need for a swift resolution, while the tax-related component faced delays.
The tax-related section, subject to withdrawal, initially proposed that Argentine citizens could declare ownership of previously undisclosed assets, including cryptocurrencies. Under this provision, the first $100,000 of such assets would incur a 0% tax rate, while the remaining undisclosed assets would be taxed at rates of up to 15%.
It’s important to note that mere possession of cryptocurrency in Argentina does not inherently trigger tax liability. However, according to Argentinian economist Marcos Zocaro, selling cryptocurrency and realizing a profit from the sale is considered a taxable event. The Argentine Tax watchdog AFIP recognizes cryptocurrencies as financial assets, subjecting them to varying tax percentages based on the assets’ location. The tax base is determined by the latest market value calculated on December 31 of each year.
