## Introduction
With decentralized finance (DeFi) transforming how Argentines earn crypto yields, understanding tax obligations is critical. Argentina’s tax authority (AFIP) treats DeFi earnings as taxable income, requiring precise reporting to avoid penalties. This guide breaks down how to legally declare and pay taxes on DeFi yields in Argentina, covering key regulations, calculation methods, and compliance strategies.
## Argentina’s Tax Framework for DeFi Earnings
Argentina taxes cryptocurrency under existing asset laws. DeFi yields—from staking, liquidity mining, or lending—are considered “income from movable capital” (renta de capital mobiliario) under Income Tax (Impuesto a las Ganancias). Key principles:
* Crypto is classified as a non-physical asset, not currency.
* Taxes apply upon yield realization (conversion to fiat or stablecoins).
* AFIP monitors exchanges via the “Sistema de Percepción” for crypto-fiat transactions.
## Taxes Applicable to DeFi Yield
### Income Tax (Impuesto a las Ganancias)
DeFi yields are taxed as capital gains or ordinary income:
* **Capital Gains**: If holding crypto over 12 months, progressive rates from 5% to 15% apply after deductions.
* **Ordinary Income**: For yields held under 12 months, profits are added to total annual income, taxed at progressive rates up to 35%.
### Personal Assets Tax (Impuesto sobre los Bienes Personales)
Crypto holdings exceeding ARS 6 million (2024 threshold) face an annual 1.25% tax on the excess value. Includes:
* Total DeFi holdings as of December 31 each year.
* Value calculated in ARS using AFIP-approved exchange rates.
## Calculating Your DeFi Tax Liability
Follow these steps:
1. **Convert Yield to ARS**: Use the official exchange rate on the day yield was received.
2. **Determine Cost Basis**: Track acquisition costs (e.g., gas fees, platform charges).
3. **Calculate Profit**: Subtract costs from yield value in ARS.
4. **Apply Tax Rates**: Based on holding period and total annual income.
**Example**: You earn 0.1 ETH from staking (worth ARS 300,000 at receipt). Costs (fees) were ARS 5,000. Taxable profit: ARS 295,000. If held >12 months, tax due: ARS 295,000 × 15% = ARS 44,250.
## Reporting and Payment Process
### Key Deadlines
* **Income Tax**: Monthly advance payments (pagos a cuenta) and annual filing (April–June).
* **Personal Assets Tax**: Annual declaration (March–April).
### Required Documentation
* Transaction history from DeFi platforms (e.g., wallet addresses, yield dates).
* Proof of ARS conversion rates (e.g., Banco Nación quotes).
* Receipts for deductible expenses.
**AFIP Forms**:
* F. 720 (Bienes Personales declaration).
* F. 572 (Income Tax annex for foreign assets).
## Record-Keeping Best Practices
Maintain digital records for 10 years:
* Dates and values of all yield receipts.
* Screenshots of DeFi platform dashboards.
* CSV exports of transaction histories.
* Documentation of ARS conversion calculations.
## Risks of Non-Compliance
Failure to report DeFi yield may trigger:
* Fines up to 200% of evaded tax.
* Criminal charges for severe cases.
* Asset freezes via AFIP’s “Fiscalización” unit.
## Recent Regulatory Updates
In 2023, AFIP enhanced crypto transaction tracking through:
* Mandatory exchange reporting for transactions over ARS 200,000.
* New digital asset categories in tax forms.
* Proposed bills to classify DeFi protocols as “financial intermediaries” (pending).
## Frequently Asked Questions (FAQ)
### Q: Is yield taxed if I reinvest it in DeFi?
A: Yes. Tax applies upon receipt, regardless of reinvestment. Value is calculated in ARS at the time of earning.
### Q: How does AFIP track my DeFi activity?
A: Through centralized exchanges during crypto-to-fiat conversions, bank deposits, and mandatory platform reporting. Use of privacy tools may raise red flags.
### Q: Can I deduct DeFi platform fees?
A: Yes. Transaction fees, gas costs, and operational expenses directly tied to yield generation are deductible from taxable profits.
### Q: Are stablecoin yields taxed differently?
A: No. All DeFi yields—whether in ETH, stablecoins, or tokens—follow the same income tax rules based on ARS value.
### Q: What if I earn less than ARS 600,000 annually from DeFi?
A: Argentina’s 2024 income tax exemption threshold is ARS 15,840,000/year. Most DeFi earnings fall below this, but must still be declared if total income exceeds it.
## Conclusion
Navigating DeFi taxes in Argentina demands meticulous record-keeping and adherence to AFIP deadlines. By declaring yields accurately and leveraging deductions, investors avoid penalties while contributing to regulatory clarity. Consult a crypto-savvy tax professional for personalized strategies as regulations evolve.
