Argentina's Milei administration removes crypto declaration benefits from omnibus bill

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The Argentine government recently decided to remove the crypto declaration benefits from the omnibus bill, as reported by local media outlet iProUP. This means there will no longer be a special regime for declaring and regularizing undeclared crypto holdings.

Introduced last month, the omnibus bill, titled ‘Law of Bases and Starting Points for the Freedom of Argentines,’ is President Javier Milei’s reform plans to tackle Argentina’s economic crisis. It presents a series of proposed monetary and fiscal measures that cover various assets, including crypto.

The bill is still a work in progress and awaits discussion and approval from Congress. The particular adjustment was made to streamline the legislative process, focusing instead on measures with a broader consensus.

Initially, the omnibus bill sought to establish a legal framework for taxpayers to declare and regularize previously undeclared assets, including crypto, under more favorable tax conditions. It included a phased approach that escalated penalties to incentivize early asset-holding declarations.

In particular, declarations made by May 31 were subject to a 5% penalty, those made by August 31 were subject to a 10% penalty, and submissions until the last day of the regulation’s validity were subject to a 15% penalty. Moreover, the Argentina’s Administration of Public Revenues planned to exempt crypto holdings under $100,000 from special taxes.

Despite these proposed benefits being scrapped, the taxation framework for crypto remains in place. Crypto holders are subject to Argentina’s existing tax regulations, which include the Income Tax on profits generated from crypto sales and the Personal Asset Tax.

For Personal Asset Tax, the AFIP has treated crypto as financial assets, reversing a previous stance that viewed them as intangible assets exempt from this tax. The taxable base for crypto is determined by their market value as of December 31 each year. Different tax rates are also applied based on location (domestically or abroad).

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