How to Pay Taxes on Airdrop Income in Argentina: Your Complete Guide

Cryptocurrency airdrops – free tokens distributed to wallet holders – have surged in popularity across Argentina. But many recipients overlook a critical fact: airdrops are taxable income under Argentine law. Failure to properly report this income can lead to penalties, audits, or legal issues. This guide breaks down Argentina’s tax rules for airdrop earnings, with actionable steps to stay compliant while navigating the crypto landscape.

Understanding Airdrop Income Under Argentine Tax Law

In Argentina, the Federal Administration of Public Revenues (AFIP) treats cryptocurrency airdrops as taxable income at the moment of receipt. Unlike mined crypto, which may be considered self-employment income, airdrops fall under “otros ingresos” (other income) in your annual tax declaration. Key principles include:

• Tax Trigger: Tax liability arises when tokens enter your wallet, not when sold.
• Valuation: Income equals the token’s market value in ARS (Argentine pesos) at receipt time.
• Residency Rules: Argentine tax residents must declare global airdrop income, regardless of origin.

How Argentina Taxes Cryptocurrency Airdrops

Argentina’s tax framework treats airdrops through two primary lenses:

1. Income Tax (Ganancias): Airdrops are taxed as miscellaneous income at progressive rates up to 35%. Declare via Declaración Jurada Anual.
2. Personal Assets Tax (Bienes Personales): If held past December 31st, tokens are included in wealth calculations at year-end market value.

Critical Note: AFIP monitors crypto exchanges via Perception Regime since 2022. Non-compliance risks fines up to 200% of owed tax plus interest.

Step-by-Step Guide to Reporting Airdrop Income

1. Record Transaction Details: Log date, token amount, and ARS value at receipt (use exchange rates from AFIP or Banco Nación).
2. Convert to ARS: Calculate income using the token’s peso value at exact receipt time.
3. File Annual Declaration: Report under “Otros Ingresos” in Form 572 (Income Tax Return).
4. Track Holdings: Include unsold tokens in Bienes Personales filings if exceeding ARS 6 million exemption.
5. Pay Obligations: Settle taxes via AFIP’s online portal before deadlines (typically March-June annually).

Top 5 Mistakes to Avoid With Airdrop Taxes

• Ignoring “Free” Tokens: Assuming no value means no tax – AFIP disagrees.
• Using Incorrect Exchange Rates: Always use AFIP-approved ARS conversion rates.
• Delaying Declaration: Taxes apply at receipt, not sale.
• Overlooking Small Airdrops: Even minor distributions require reporting.
• Poor Record-Keeping: Maintain screenshots, wallet logs, and exchange data for 5+ years.

FAQs: Paying Taxes on Airdrop Income in Argentina

1. Are all crypto airdrops taxable in Argentina?

Yes. AFIP considers any token transfer without direct payment as taxable income, regardless of project origin or token utility.

2. How do I value airdropped tokens for tax purposes?

Use the token’s market value in ARS at the exact time it arrives in your wallet. Track prices via major exchanges like Binance or Lemon Cash, converted at AFIP’s official exchange rate.

3. What if I sell airdropped tokens later at a loss?

You still owe tax on the initial receipt value. Losses from subsequent sales can offset capital gains but not ordinary income.

4. Do I need to report airdrops under ARS 100,000?

Yes. While minor, they’re legally reportable. AFIP’s data tools can detect unreported crypto activity.

5. Can I deduct expenses related to airdrops?

Generally no, unless you incurred direct costs (e.g., transaction fees) – but consult a contador público (CPA) for complex cases.

6. What penalties apply for non-compliance?

Fines range from 50% to 200% of unpaid tax, plus monthly interest (currently ~4%). Severe cases may trigger criminal tax evasion charges.

Pro Tip: Use crypto tax software like Koinly or consult an Argentine CPA specializing in crypto to automate calculations and ensure accuracy.