In the midst of the uncertainty that arises from tax regulations and their scope on crypto assets, Marcos Zocaro, tax advisor, board member of the NGO Bitcoin Argentina and professor of the Diploma in Cryptoeconomics and Law, explained What are the tax news of this sector at national level?including the cryptocurrency mining and the sale of NFTs.
What happens in a country like Argentina where it doesn’t exist yet clear tax framework for the various cryptocurrency operations. For Zocaro, There are various regulations, opinions and resolutions -both nationally and provincially- affecting the industry and its users, and to give an explanation, the taxman tries a review.
“In Argentina no invoice is issued for the sale of bitcoins, for example, due to General Resolution 1415 of the Federal Public Revenue Administration (AFIP) does not consider it”, explains the author of the book “Cryptocurrency Manual”, member of the NGO Bitcoin Argentina and professor of the third edition of the Diploma in Cryptoeconomics and Law.
The specialist points it out Personal property, income tax, and the latest law taxing cryptocurrency mining in the province of Buenos Airesare currently the three regulations that digital currency users need to pay attention to in making their affidavits and fulfilling their tax obligations.
However, Zocaro warns that today these rules “look gray regarding their definitions and quotations”.
First of all, personal wealth tax. Even if there is neither in the law nor in its regulations no explicit reference to crypto assets, opinion 2/22 of the AFIPwhich is a non-binding interpretation made by the prosecutor on the law, establishes that cryptocurrencies are a financial asset and therefore are taxed on personal assets. However, not all assets are affected, therefore we must take into account the type of cryptocurrency we are dealing with to know what its tax treatment is.
In this sense, it taxes some goods that people have, but there are some that are exempt. “If a natural person owns tied assets above a minimum – just over $11 million by 2022- you need to register, submit an affidavit and pay the corresponding amount“, he says. And he warns: “Goods are taxed differentlyand, at the current value or at the cost of its purchase, and the type of rate varies according to where they are located, whether in the country or abroad, the latter being the ones who pay the most”.
As for cryptocurrencies, it is necessary to take into account to know whether it is a taxed asset or not, according to the expert, what kind of cryptoactive is possessed. Be it payment tokens (like Bitcoin), utility tokens or security tokens (like the tokenization of company stock). “In the latter case, being the digital representation of our shareholding in a company, is achieved by personal property“he points out.
Regarding the income tax. Zocaro states that “all profits made from the sale of cryptocurrencies are achieved.” Although the standard speaks of digital currencies and intends them as payment tokens, the consideration on the source of profit is not clear, what changes the way the tax is paid is the fact that it is local or foreign.
The latest example is the new cryptocurrency mining tax in Buenos Aires. “This law qualifies cryptocurrency mining under the AFIP data processing code e establishes that the gross income reaches this type of business as long as the hardware is located in the province of Buenos Aires”, explains the specialist. And he adds: “The standard, which began to be applied in January, has some weaknesses, such as the lack of knowledge of the different types of protocols, which does not allow full application of the law in all mining processes. Nor does it establish the prices to which the rate applies, which is 4%. Considering that prices vary on different exchanges, It is not clear which should be taken as a reference”.
In Argentina, no law speaks of NFTs, but only of earnings from digital currencies. No invoice is even issued for the sale of Bitcoin, for example, because AFIP Resolution 1415 does not contemplate it. Only in the case of operating through an exchange, this service provider issues an invoice, but “only for the commission charged for the execution of the transaction”.
For the Zocaro, the NFT situation needs to be assessed It is useful to think of its fiscal nature in the case of Spain. “There, the tax entity has established some views to classify the nature of this token and its tax scope,” he indicates. And he adds: “In Spain, the sale of an NFT which establishes the right to use a certain image or photograph, for example, but which does not grant ownership, is qualified, with respect to VAT, which is ‘Value Added Tax, as a provision of services and not as a sale of goods”. “Although the rule presents nuances that it is very broad to analyze here, the example is useful for analyzing the doubt that existed in the face of nature as to what a NFT and how to classify it,” he concludes.
What does the Central Bank think about cryptocurrencies?
G20 member countries have opened the debate on the policy approach they should adopt towards cryptocurrencies and how to contain their risks. In this context, during the Summit of Economy Ministers, held in India, the president of the Central Bank (BCRA), Miguel Ángel Pesce, He spoke of the need to “isolate” the effects of these assets from the traditional financial system.
“We are delighted to have a deeper and broader discussion on policy actions for cryptocurrencies. What we need is to replicate the work done on banking regulation in non-bank financial institutions (NBFIs),” said Pesce.
His claims do not arise in isolation, the truth is that local economic crises and inflation position Argentina as a leader in the region in terms of cryptocurrencies.
“Cryptocurrencies are decentralized and anonymous in nature and it is not possible to know where they are held. We should treat them as similar to gambling”, he indicated days ago.
NS
Source: Clarin
