The Argentine government, led by Javier Milei, has withdrawn provisions regarding cryptocurrency tax benefits from a comprehensive omnibus bill. The original bill aimed to allow taxpayers to declare undisclosed assets, including cryptocurrencies, at reduced tax rates.
Crypto Tax Clause Omitted in Legislative Reform
A specific clause that would have permitted the declaration of various assets, such as cryptocurrencies, has been removed from the omnibus bill, known as the “Foundations and Starting Points for the Freedom of Argentinians Act.” This bill is part of a broader reform effort that includes granting President Milei legislative powers to enact direct measures without Congress’s approval.
Interior Minister Guillermo Francos explained that the exclusion of the crypto tax clause was due to a lack of consensus in Congress. He emphasized the bill’s general focus on economic freedom and the need for swift passage through Congress, indicating that the tax issues would be revisited later.
The bill’s tax provisions had initially offered Argentine citizens the chance to declare undisclosed assets, including cryptocurrencies, with favorable tax rates. The first $100,000 would have been taxed at 0%, with higher amounts subject to up to 15% tax.
In Argentina, holding cryptocurrencies is not taxable, but profits from their sale are, according to accountant Marcos Zocaro. The Argentine Tax Authority AFIP currently classifies cryptocurrencies as financial assets, which are taxed based on their market value at the end of each year.
The omnibus bill continues to seek consensus in Congress and is undergoing significant revisions. Previously, Milei had implemented an emergency executive order to deregulate key sectors and allow rental agreements to be made in BTC.