Argentina's cryptocurrency law requires holders to declare their assets.
holders are exempt from special taxes.
June30, the Argentine government decided to exempt #cryptocurrencies from taxation in a controversial omnibus bill. According to the bill, taxpayers were required to declare ownership of undeclared assets, including cryptocurrencies. However, the government has now announced that #cryptocurrency owners will be penalized for tax evasion if they fail to declare their assets.
the Argentine government passed Law No. 27,743 on the tax package. Under this law, owners of #bitcoin [BTC] and other cryptocurrencies can claim tax exemption if they declare their assets to the government.
The owners of declared cryptocurrencies can avoid prosecution for tax evasion, and those with $100,000 worth of crypto-tokens are exempt from paying special taxes.
According to an official statement, individual and institutional taxpayers who own cryptocurrency are exempt from paying special taxes and can also avoid civil penalties after declaring their ownership.
In recent years, Argentina has experienced extreme inflation of 271% per year. The current inflation rate is one of the highest in the world.
The rising inflation rate has prompted many people to use cryptocurrencies as an alternative to local currencies. Such cryptocurrencies have become a store of value and a safe haven from inflation in the form of stablecoins, in particular USDT in Tether.
But Argentines' enthusiasm for cryptocurrencies comes with additional risks. Owners of #digital assets have to pay a huge premium of up to 40% of their value in order to get stable coins.
There is no doubt that the new cryptocurrency law will have a significant impact on the local crypto community. Firstly, declaring ownership of digital assets such as cryptocurrencies will result in additional taxes.
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