This Country, Which Is Preparing To Use Dollars Instead Of Its Own Currency, Is Now Abolishing Cryptocurrency Taxes!

The Argentine government, led by President Javier Milei, has decided to remove the tax portions for cryptocurrencies from the omnibus bill submitted to Congress.

Argentine Government Removes Crypto Taxes from Omnibus Law

This bill previously allowed taxpayers to declare ownership of certain previously undeclared assets, including cryptocurrencies, thereby reducing payments and fees associated with this task.

The omnibus bill, officially called the "Law of Foundations and Starting Points for the Freedom of Argentines," is designed to advance reforms in several areas.

One of these reforms was to give President Milei legislative power, bypassing Congress, allowing him to take direct action in various areas.

Interior Minister Guillermo Francos said the decision to withdraw these proposals was due to the lack of consensus in Congress on this part of the bill. Francos said:

"The proposal aims to create freedom for economic development. It was very important to get this out quickly. The tax part was smaller, and it delayed its handling."

The tax-related part of the bill would allow Argentine citizens to declare that they own previously undeclared assets, including cryptocurrencies.

The first $100,000 worth of these assets would be taxed at 0%, while the remaining undeclared assets would be taxed at up to 15%.

In Argentina, simply holding cryptocurrencies does not incur a tax liability. However, according to Marcos Zocaro, an Argentinian economist, selling cryptocurrencies and making a profit from that sale is considered a taxable event.

Despite this, the Argentine Tax watchdog AFIP recognizes cryptocurrencies as a financial asset. As such, they are subject to a tax percentage that varies depending on where the assets are located. The tax base is determined based on the most recent market value, which is calculated on December 31 of each year.