The New Bill of Argentina to Tax Assets Held in Foreign Countries Along With Crypto

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Digital assets in Argentina are defined as a digital representation of value or rights, transferred and stored electronically using Distributed Ledger Technology(DLT) or other similar technology according to the crypto regulations of Argentina. 

The two well-known bank’s decision in Argentina was criticized, as crypto-assets are not regulated in Argentina, the Central bank says that financial entities in the country can not allow any of such crypto facilities.

Argentines are accepting crypto as it helps to save money during the bad time of high rate inflation in the county. Alongside, the president, Alberto Fernandez reinstated the currency controls in 2019. 

The Argentine Senate has now passed a bill to allow the government to tax assets held by citizens of foreign countries. The bill further determines that the government will tax all kinds of assets that have not been declared to the tax authorities before, which includes real estate, stocks, cryptocurrency, and other assets carrying economic value.

Argentine citizens have to pay 50% of the tax if it gets approved. The fund will be denominated in dollars further and will be active until Argentina pays its debt to the International Monetary Funds (IMF), about $45 billion. The fund collected by the launch of this bill will be collected and managed by the Economic Ministry of Argentina. 

Reason for Public’s Criticism 

The public’s reaction in the country has been negative about the bill, many of the aspects passed by the legislation are criticized. Kim Grauer, Research’s director, thinks that” The country has an overall cryptocurrency market value at nearly $70 billion, well above Venezuela’s $28.3 billion, only second to Brazil in the region.”

The reason for the public’s negative reaction to this bill is as it has cryptocurrency as part of it, is the one reason for criticism. And the other reason is the project’s establishment with foreign banks as retention agents for this money, and the way the government will use international treaties to acquire information about crypto holders. Hence with this, the local media of Argentina reports very less chances of the Bill getting passed by the Chamber of Deputies.  

The SDC Tax Consultant, Sebastian M. Dominguez, stated

“There is an extensive list of countries reporting accounts of Argentinians abroad, known as ‘cooperators’. These are more than 120 nations, including crypto-friendly countries such as Malta, Seychelles, Virgin Islands, Liechtenstein, Gibraltar, and El Salvador.”