Argentina’s newly formed government, led by self-proclaimed libertarian Javier Milei, has unveiled the “Law of Bases and Starting Points for the Freedom of Argentines.” The comprehensive 351-page bill, introduced on Dec. 27, includes significant reforms across tax, labor, criminal, energy, and electoral matters, marking the beginning of Milei’s controversial reform agenda.
Crypto in Tax Declarations
The bill addresses crypto holdings in the context of tax declarations, specifically in the “asset regularization scheme” section. This scheme outlines the types of assets taxpayers can legalize without needing “additional documentation” regarding their origin. The government aims to streamline the process of legalizing crypto assets, even for those overdue on tax declarations.
Flat Tax Rates
Under the asset regularization scheme, taxpayers opting for legalization only need to pay a flat tax on their assets. The rates are structured as follows:
- 5% if holdings are declared by the end of March 2024.
- 10% from April to the end of June 2024.
- 15% from July to the end of September 2024.
This move follows a decree passed in December, emphasizing economic reform and deregulation, suggesting that BTC and other cryptocurrencies could be used in Argentina under specific conditions. Although the “Bases for the Reconstruction of the Argentine Economy” decree didn’t explicitly mention crypto, it allowed debtors to settle payments using currencies not recognized as legal tender in Argentina.
Milei’s Stance on Crypto
Javier Milei, who assumed office amidst rampant inflation, referred to Bitcoin as a step toward “the return of money to its original creator, the private sector.” Despite taking a pro-crypto stance, he has not made explicit statements on digital assets since taking office.
This legislative push aims to provide clarity and simplicity for crypto holders seeking to regularize their holdings, aligning with Argentina’s broader economic and regulatory reform initiatives.