Understanding DeFi Yield Taxation in Argentina
As decentralized finance (DeFi) transforms how Argentines earn passive income, tax authorities are taking notice. The AFIP (Administración Federal de Ingresos Públicos) considers DeFi yield taxable income, regardless of whether you’re staking, lending, or providing liquidity. With crypto adoption surging in Argentina amid inflation concerns, understanding how to report these earnings is critical to avoid penalties. This guide breaks down Argentina’s evolving crypto tax landscape for DeFi participants.
How Argentina Taxes DeFi Earnings
DeFi yields fall under Argentina’s income tax (Impuesto a las Ganancias) framework. Key principles include:
- Tax Trigger: Yield is taxable upon receipt (when tokens hit your wallet), not when sold.
- Valuation: Convert yields to Argentine pesos using the official exchange rate (A3500) at receipt date.
- Tax Rate: Progressive rates from 5% to 35% apply based on total annual income.
- Reporting Threshold: All DeFi earnings must be declared regardless of amount – no minimum exemption.
Note: Frequent trading may trigger “business activity” classification, subjecting you to higher tax rates and IVA (VAT) obligations.
Step-by-Step Guide to Reporting DeFi Yield
- Track All Transactions: Use tools like Koinly or CoinTracker to log every yield event with timestamps and ARS values.
- Convert to Pesos: Apply BCRA’s average daily exchange rate for each yield distribution date.
- Categorize Income: Label yields as “Rendimientos de Capital” (Capital Yields) on Form 572.
- File Annually: Declare through AFIP’s “Sistema de Presentaciones Digitales” before June 30th for the prior tax year.
- Retain Proof: Keep wallet records and exchange statements for 10 years.
Common DeFi Tax Mistakes to Avoid
- ❌ Ignoring small yields from multiple protocols
- ❌ Using unofficial exchange rates for ARS conversion
- ❌ Forgetting to report airdrops linked to DeFi participation
- ❌ Mixing personal and DeFi transactions in one wallet
- ❌ Assuming stablecoin yields are tax-free
Tools for Argentine DeFi Tax Compliance
Simplify reporting with these resources:
- AFIP’s “Mi AFIP”: Portal for digital tax filings
- Crypto Tax Software: Koinly (supports ARS), Catax
- Exchange Rate Tools: BCRA’s daily reference rates
- Tax Advisors: Seek CPAs specializing in crypto (e.g., CryptoLaw Argentina)
DeFi Tax FAQ for Argentine Residents
Q: Is unstaking considered a taxable event?
A: No – only the initial yield receipt is taxed. Selling unstaked tokens later triggers capital gains tax.
Q: How are yield-bearing stablecoins taxed?
A: Identical to volatile tokens – the ARS value at receipt date determines taxable income.
Q: Can I deduct gas fees?
A: Yes – transaction costs directly related to earning yield are deductible from taxable income.
Q: What if I earn yield in tokens not listed on Argentine exchanges?
A: Use the token’s USD market price at receipt time, converted via BCRA’s USD/ARS rate.
Q: Are there penalties for late DeFi tax reporting?
A: Yes – up to 200% of owed taxes plus monthly interest (currently ~4% monthly).
