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The gray areas of bitcoin: do cryptocurrencies pay any tax?

2021-05-06T08:29:45.428Z

What is the position of these assets against Personal Assets, VAT, Profits and Gross Income. Marcos Zocaro 05/05/2021 11:33 AM Clarín.com Economy Updated 05/05/2021 11:33 The last bitcoin rally made people talk about cryptocurrencies even in the supermarket queue. Nobody wants to be left out of the phenomenon. One of the questions that many ask is what taxes are paid for buying and using cryptocurrencies in Argentina. This question is raised even by the accountants themselves, since t



Marcos Zocaro

05/05/2021 11:33 AM

  • Clarín.com

  • Economy

Updated 05/05/2021 11:33

The last bitcoin rally made people talk about cryptocurrencies even in the supermarket queue.

Nobody wants to be left out of the phenomenon.

One of the questions that many ask is

what taxes are paid for buying and using cryptocurrencies

in Argentina.

This question is raised even by the accountants themselves, since

the legislation is unclear in this regard.

Faced with this confusing situation, what is the current tax regulation and its gray areas?

If a person bought cryptocurrencies to save and keeps them "saved", will they have to pay the annual Personal Property Tax?

This tax applies to all persons whose taxable assets as of December 31 of each year exceed the general floor of $ 2 million.

They will be encumbered assets, for example, cars or cash.

What about cryptocurrencies?

The Personal Property Tax Law

does not specifically mention them

and, therefore,

the treatment to be applied to the possession of these assets

is not clear from the

legal

text

.

In this way, professional opinion is usually divided into

two positions

: a majority, of those who assert that cryptocurrencies are a taxed financial asset, and another that maintains that they are

exempt intangible assets

(and therefore do not pay this tax).

Now if that same person decides to sell their cryptocurrencies (all or part of them).

Will this sale have to pay any tax?

In the case of Value Added Tax (VAT), the sale of cryptocurrencies

is not reached

.

In other words, VAT will not have to be paid.

And the Income Tax?

Is taxed for the difference between the sale price and the purchase price?

Since 2018,

the Law incorporates as taxed profit the result of the sale of “digital currencies”

.

And, although there are doubts about what should be considered as “digital currency” and if cryptocurrencies such as bitcoin are included in this concept, since 2018 the aliquot that falls on the profits originated in the sale of these assets is

15% for natural persons.

In this particular case, does the person have

to make sales on a regular basis

to be obliged to pay income tax?

No, even if you only make a few sales in the year, and as long as the “annual minimum” is exceeded, you will have to pay the tax.

And

what is that minimum

?

For the year 2020 it was $ 123,861 and for 2021 it amounts to $ 167,678.

That is, if the difference between the amount of cryptocurrency sales and its associated costs and expenses exceeds said minimum, the Income Tax should be taxed.

In addition, you should also pay attention to the Provincial Tax on Gross Income.

Until

today, only Córdoba took particular care to legislate

on the sale of cryptocurrencies.

According to the Cordoba norm, Gross Income must be paid whenever the activity of buying and selling cryptocurrencies is carried out

on a regular basis

in that province.

And to calculate the tax corresponding to this activity, the difference between the sale price and the purchase price must be considered as the tax base, and on that amount apply the aliquot that goes from 4% (reduced rate) to 6.5% (rate general).

Finally, it is important to know that since the end of 2019 there is an

informative regime

that obliges (among others)

local

exchanges

(a kind of exchange house) of cryptocurrencies to

report monthly to the AFIP

about the movements and holdings of their clients.

The Central Bank is also asking financial institutions to report the operations that their clients carry out with local exchanges.

It is not yet known whether any new rule will emerge from that information,

but everything suggests that it will.


Marcos Zocaro is a tax expert, author of the books "Cryptocurrency Manual" and "A Tax Exchange".

Look also

Cryptocurrencies: The Central Bank follows in its footsteps

With a valuation of US $ 2,200 million, which is the first bitcoin unicorn in Latin America

The cryptocurrency boom in Argentina as a form of savings

Source: clarin

All business articles on 2021-05-06

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