In Argentina, a provincial legislature has voted in favor of a bill to impose new taxes on gross incomes from crypto transactions. Cordobaâ€™s central province is now the first one to impose crypto taxes in the country, which involves crypto exchange platforms and retail traders.
Approved Tax Bill Grants a Definition of Cryptocurrencies
According to CBA4N, the â€œTax Law 2021â€ approved by the legislature seeks to tax people 4% to 6.5% on gross incomes from crypto-related transactions. Also, individuals or businesses who receive payments in cryptocurrencies â€œin exchange for goods or servicesâ€ will be subject to a rate of 0.25%.
Citing Cordoba Bitcoin, a local crypto community, the local media outlet believes other provinces and even the national government could replicate the measure.
Cordoba Bitcoin also clarified CBA4N that previously, there was only a 15% tax corresponding to earnings, and that covered cryptos as a result of the difference in price in the year. The Central Bank of the Argentine Republic required the local exchanges to inform about any transactions related to cryptocurrencies.
In this case, the novelty is that the approved bill is now granting a clear definition to cryptocurrencies:
New Rules May Scare off Investors in the Sector, Warns Expert
The law mentioned by Cordobaâ€™s crypto community is the Income Tax Law, modified in 2017 to include crypto assets within its content. Marcos Zocaro, a local tax consultant, told La Nacion the following about the negative side such bill approved could bring to the local economy:
He also pointed out the ambiguity of the termsâ€™ definitions such as bitcoin or stablecoins under the tax law:
What are your thoughts on this billâ€™s approval in Cordoba, Argentina? Let us know in the comments section below.
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