With Argentina’s growing crypto adoption amid economic volatility, understanding how to report cryptocurrency income is crucial for legal compliance. The Federal Administration of Public Revenues (AFIP) treats crypto as taxable assets, meaning profits from trading, mining, or receiving digital currencies must be declared. This guide breaks down Argentina’s crypto tax rules into actionable steps.
## Understanding Argentina’s Crypto Tax Framework
Cryptocurrencies are classified as “otros bienes” (other assets) under Argentine tax law. You’re required to report:
– Capital gains from selling crypto for pesos or other currencies
– Profits from crypto-to-crypto trades
– Income from mining, staking, or airdrops
– Crypto received as payment for goods/services
Tax residency determines obligations: Residents pay taxes on worldwide crypto income, while non-residents only declare Argentine-sourced earnings.
## When Crypto Transactions Trigger Tax Events
You must report income in these scenarios:
1. **Selling crypto for fiat currency** (e.g., Bitcoin to ARS)
2. **Trading between cryptocurrencies** (e.g., ETH to USDT)
3. **Spending crypto directly** on goods/services
4. **Earning crypto** through mining, staking, or interest
5. **Receiving airdrops or forks**
6. **Transferring crypto abroad** exceeding $1,000 monthly
Note: Buying crypto with pesos and holding it isn’t taxable—only disposal events matter.
## Step-by-Step Guide to Reporting Crypto Income
Follow this process for AFIP compliance:
### Step 1: Calculate Your Taxable Gains
Determine profits using this formula:
“`
Profit = Sale Price – (Acquisition Cost + Allowable Expenses)
“`
Track:
– Purchase price in ARS (including fees)
– Fair market value at transaction time
– Expenses like exchange withdrawal fees
### Step 2: Classify Your Income Type
Categorize earnings for correct tax treatment:
– **Capital Gains**: Profits from selling/trading (taxed progressively up to 15%)
– **Ordinary Income**: Mining rewards or payment for services (scales with personal income tax up to 35%)
### Step 3: File Required Forms
Submit these AFIP declarations:
– **Form 720**: For foreign-held crypto exceeding ARS 1 million annually (due March 31)
– **Monotributo or Ganancias**: Report income monthly/annually based on taxpayer category
– **Valores Mobiliarios**: For professional traders
### Step 4: Pay Taxes Due
Settle liabilities through:
1. AFIP’s “Mis Facilidades” payment portal
2. Approved banks with tax code “060”
3. Cryptocurrency payment via approved exchanges (pilot program)
## Essential Record-Keeping Practices
Maintain these documents for 10 years:
– Transaction histories from exchanges
– Wallet addresses and transfer proofs
– Receipts for crypto purchases/spending
– Mining pool payout records
– Calculations of ARS values at transaction dates (use AFIP’s average exchange rate)
## Common Crypto Tax Mistakes to Avoid
– **Ignoring small transactions**: All disposals must be reported regardless of amount
– **Miscalculating cost basis**: Using incorrect acquisition dates/prices
– **Omitting Form 720**: Penalties reach 150% of omitted assets’ value
– **Forgetting mining income**: Rewards are taxable upon receipt
– **Using unofficial exchange rates**: Always reference AFIP’s published rates
## Crypto Tax FAQ Section
**Q: Is cryptocurrency legal in Argentina?**
A: Yes, but all income must be declared to AFIP. The Central Bank restricts banks from offering crypto services, but individuals can trade freely.
**Q: What exchange rate should I use for conversions?**
A: Use AFIP’s average monthly exchange rate (“tipo de cambio promedio”) for the month of the transaction.
**Q: Are losses deductible?**
A: Yes, capital losses can offset gains in the same fiscal year. Unused losses carry forward 5 years.
**Q: Do I need to report crypto held in foreign exchanges?**
A: Absolutely. Form 720 specifically requires declaring overseas-held assets, including crypto.
**Q: How does the Monotributo system work with crypto?**
A: Self-employed individuals receiving crypto as payment must convert earnings to ARS and include them in monthly Monotributo declarations if below income thresholds.
**Q: What penalties apply for non-compliance?**
A: Fines range from 50% to 200% of unpaid tax, plus interest. Criminal charges may apply for severe evasion.
## Staying Compliant in 2024
Argentina is enhancing crypto oversight through:
– New transaction reporting requirements for exchanges
– Tighter capital controls on dollar conversions
– Proposed digital wallet licensing laws
Consult a certified “contador público” (CPA) specializing in crypto for personalized advice. AFIP’s “Sistema de Cuentas Tributarias” portal provides official forms and payment tools. By accurately reporting crypto income, you avoid penalties while contributing to Argentina’s formal economy.
