In Argentina, more and more people use bitcoin and other cryptocurrencies in their daily lives. However, there is a question that many prefer to avoid: how are crypto profits taxed correctly in Argentina?
The answer, in many cases, is uncomfortable: it is not always possible to do it precisely. Not because of a lack of will, but because the regulatory framework itself presents difficulties that, in practice, are very difficult to resolve.
A problem that begins in the definition
Since 2018, the Income Tax Law includes “digital currencies” among the assets covered. The problem is that What is meant by that term has never been clearly defined.
But there is an even more complex point: determining the source of the profit.
The regulations establish that if the profit is from an Argentine source, a specific rate is applied, while if it is from a foreign source, the treatment is different. The criterion to define it is the address of the issuer.
And there the problem appears: Bitcoin is a decentralized network, with no identifiable issuer. There is no domiciled company, nor a State, nor a clear jurisdiction that controls its network, which is spread throughout the world. In that vacuum, the determination is subject to professional interpretation.
The labyrinth of calculation
Adding to the difficulties is the way in which the profit must be calculated. The regulations require applying the “first in, first out” method, which implies reconstructing the complete history of operations for each type of asset.
In practice, this can mean working with extensive spreadsheets, compiling dozens of monthly trades, different exchange rates, and multiple platforms.
Furthermore, not only conversions to pesos or dollars are considered sales. Also are computed as taxable operations exchanges between cryptocurrenciesthe use for payments and other forms of disposition of assets.
What in the user experience may be a simple operation – such as paying for a product or exchanging assets – from a tax point of view may involve a series of complex calculations.
The case of cryptocurrency cards
A clear example of this complexity is seen in the use of cards associated with cryptocurrency accounts.
When a person pays in a business with this type of card, the system automatically converts the crypto assets into local currency. For the user, the experience is similar to any everyday payment.
However, fiscally, each of those transactions constitutes a sale of cryptocurrencies. Over the course of a year, this can translate into hundreds or even thousands of transactions that would need to be recorded and analyzed.
The question is inevitable: how many taxpayers—or even professionals—are in a position to make that calculation accurately?
A gap that requires training
This scenario reveals a gap between current regulations and the reality of the use of these technologies.
Bitcoin proposes an open, global and decentralized system. The challenge is that current tax rules were designed for traditional assetswith clear intermediaries and simpler traceability.
Faced with this, the role of professionals in economic sciences and law becomes increasingly relevant. Not only to interpret the regulations, but also to develop criteria that allow them to be applied reasonably in new contexts.
From my experience as an accountant and member of the NGO Bitcoin Argentina, a non-profit educational organization, I advise that to deal with the difficulties of taxes in Argentina on cryptocurrencies It is important to take into account:
- The tax on gross income. It is important to carry an orderly record of all transactions carried outincluding date, type of operation (purchase, sale, air clothing, etc.), quantity and amount, among other concepts.
- Tax innocence, bitcoin and crypto assets. It is useful save issued receipts by decentralized exchanges (DEX) and/or screenshots of the transactions carried out.
- The monotax for your cryptocurrencies. Remember that Exchanges are also considered sales.
- If you declare your cryptocurrencies at cost, not market value, it’s convenient, isn’t it? If you carry out many operations in the year, evaluate the use of automated accounting control applications.
- “Paper” earnings They don’t pay taxes (until you sell).
- ARCA now asks for the public key of your cryptocurrency wallet.
- The Law still does not know where bitcoin is (and that generates legal chaos).
Understand the new with appropriate tools
Beyond the technical complexity, what this scenario brings into play is the ability to adapt to new forms of value exchange.
The adoption of Bitcoin and crypto assets continues to grow. Accompanying this process with adequate understanding frameworks and good practices is key, not only to comply with tax obligations, but also to reduce uncertainty and improve the quality of professional advice.
Because when the norm fails to explain reality, knowledge becomes the most important tool.
Disclaimer: The views and opinions expressed in this article belong to its author and do not necessarily reflect those of CriptoNoticias. The author’s opinion is for informational purposes and under no circumstances constitutes an investment recommendation or financial advice.