The Argentine government published a decree yesterday that meant crypto transactions are now subject to the country’s credits and debts tax laws.
The decree reportedly aims to clarify—and limit—tax exemptions granted to third-party payment service providers. The new rules also confirm that crypto transactions are now a taxable activity.
“The exemptions provided for in this decree and in other regulations of a similar nature will not be applicable in those cases in which the movements of funds are linked to the purchase, sale, exchange, intermediation and/or any other operation on cryptoassets,” the government reportedly said.
Previously, crypto transactions between individuals were exempt and treated as though they were simply cash transactions.
How do other countries deal with crypto and tax?
There is no global agreement on how governments should tackle cryptocurrencies, but there are several countries that simply don’t tax crypto gains.
One such example is Belarus, which, in March 2018, introduced legislation that legalized cryptocurrency activity in the country. Crypto investments are considered “personal investments,” and thus are exempt from taxation.
In Malaysia, cryptocurrency transactions are also tax-free, because the government does not recognize them as assets or legal tender. However, profits from active crypto trading can be considered revenue and so may become taxable down the road.
In Portugal, proceeds from the sale of cryptocurrencies by individuals have been a tax-exempt activity since 2018. Crypto trading is also not considered investment income, meaning that crypto trading also dodges a 28% tax rate.