[NEWS] Argentina's Milley administration withdraws cryptocurrency tax bill

Argentine President Javier Milley has chosen to remove cryptocurrency tax from the controversial "Omnibus Bill," an attempt to hasten the passage of a series of reforms that are of paramount importance to the administration and avoid long-term debate.

The Omnibus Bill has generated considerable controversy due to the sweeping reforms proposed across a wide range of sectors, including defense, taxation and pension systems, public works, labor formalization, privatization of state-owned enterprises, education, environmental law, and the restructuring of the country's administration.

The latest Omnibus Bill, presented to Congress under Milley's leadership, the Law on Foundations and Starting Points for Freedom in Argentina, initially included provisions for citizens to own assets that they had not previously declared, such as crypto assets.

These provisions are intended to promote economic freedom in Argentina and streamline the asset declaration process. They provide a mechanism for reducing tax rates by filing declarations early.

The reason why the cryptocurrency tax was withdrawn from the bill is thought to be the lack of consensus in Congress.

Interior Minister Guillermo Francos emphasized the significance of the legal reform and said, "The implementation of economic reform is urgent."

Plan to introduce tax rates that vary gradually depending on the time of filing

The Argentine government recognizes profits generated by cryptocurrency trading as taxable, and emphasizes that this is a move to recognize cryptocurrency as a financial asset. Under the original framework, if the value of the assets held was less than $100,000 (approximately 14.85 million yen), they were to be excluded from the special tax.

In addition, it was planned to impose a 5% tax on declarations by the end of March this year. In addition, it was included in the imposition of a 10% tax on declarations made from April to June, and a 15% tax on declarations made from July to the end of September. The tax rate varies depending on the location of the assets and is calculated based on the market value at the end of each year.

This decision has revealed the difficulty of balancing the promotion of innovation with regulatory clarity. On the other hand, it is expected that the movement to explore the use of digital assets, including cryptocurrencies, will continue to accelerate under President Milley, and attention will be focused on his every move.

Reference:Decrypt
Image: Shutterstock

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