Understanding Crypto Taxation in Argentina
As cryptocurrency adoption surges in Argentina, understanding tax obligations is crucial for investors and traders. The Federal Administration of Public Revenue (AFIP) treats crypto assets as taxable property, not currency. Whether you’re mining Bitcoin, trading altcoins, or earning staking rewards, your profits are subject to Argentine tax laws. With increased regulatory scrutiny, proper reporting helps avoid penalties while maximizing legal deductions.
How Crypto Income is Taxed in Argentina
Argentine tax treatment varies based on activity type and residency status:
- Capital Gains Tax: Applies when selling crypto at a profit. Calculated as (Selling Price – Acquisition Cost) × 15% flat rate for residents.
- Income Tax: Regular trading activity may qualify as habitual income, taxed at progressive rates up to 35% under “Ganancias” tax.
- Mining/Staking Rewards: Treated as ordinary income at market value when received.
- Personal Assets Tax (Bienes Personales): Crypto holdings exceeding ARS 6 million (≈USD 6,600) face annual wealth tax up to 1.25%.
Step-by-Step Guide to Reporting Crypto Taxes
- Track All Transactions: Document every trade, transfer, and income event with dates, values in ARS, and wallet addresses.
- Calculate Gains/Losses: Use FIFO (First-In-First-Out) method for cost basis calculations as required by AFIP.
- File Form 720: Declare foreign-held crypto assets annually before December 31st.
- Report on Annual Tax Return: Include capital gains in your “Ganancias” tax filing (Form 572).
- Pay Obligations: Settle taxes via AFIP’s online portal using CBU transfers or credit cards.
Critical Mistakes to Avoid
- Assuming P2P trades or small transactions are exempt
- Failing to convert crypto values to Argentine pesos at transaction time
- Neglecting to report losses (which can offset future gains)
- Omitting DeFi activities like liquidity mining or yield farming
- Using incorrect exchange rates (always use BCRA’s official FX rate)
Frequently Asked Questions
Q: Do I pay taxes if I hold crypto without selling?
A: Only if your total assets exceed ARS 6 million for Bienes Personales tax. Unrealized gains aren’t taxed.
Q: How are crypto-to-crypto trades taxed?
A: Each trade is a taxable event. You must calculate pesos gain/loss when disposing of any asset.
Q: Can I deduct crypto losses?
A: Yes, capital losses can offset gains in the same fiscal year and carry forward for 5 years.
Q: Is Binance reporting to AFIP?
A: Major exchanges now comply with AFIP data-sharing agreements. Assume all transactions are visible.
Q: What happens if I don’t report crypto income?
A: Penalties include 50-100% of owed taxes plus interest. Severe cases may trigger criminal tax evasion charges.
Always consult a certified Argentine tax professional for personalized advice, especially with complex transactions or residency questions. AFIP regulations continue evolving – stay informed through official channels to ensure compliance.
