How to Pay Taxes on Crypto Income in Argentina: A Complete Guide

Cryptocurrency adoption in Argentina has surged in recent years, driven by economic instability and inflation. However, as crypto transactions grow, so does the need to understand tax obligations. This guide explains how to pay taxes on crypto income in Argentina, covering laws, reporting steps, and common pitfalls.nn## Understanding Argentina’s Crypto Tax LawsnArgentina’s Federal Administration of Public Revenue (AFIP) treats cryptocurrencies as “assets” rather than legal tender. Key regulations include:n- **Capital Gains Tax**: Profits from selling crypto are taxed if held for less than 12 months. Rates range from 5% to 35%, depending on income.n- **Income Tax**: Crypto earned through mining, staking, or salaries is taxed as ordinary income (scaled up to 35%).n- **Personal Assets Tax (Bienes Personales)**: Crypto holdings exceeding ARS 6 million (~USD 6,800) are taxed at 0.5%–1.5%.nn## Types of Crypto Income Subject to Taxationn### 1. Trading ProfitsnBuying low and selling high triggers capital gains tax. Example: Buying Bitcoin at ARS 1 million and selling at ARS 1.5 million within a year incurs tax on the ARS 500,000 profit.nn### 2. Mining & Staking RewardsnMined crypto is taxed as ordinary income at its market value when received. Staking rewards follow the same rule.nn### 3. Crypto Salaries or PaymentsnFreelancers or businesses accepting crypto must report income in ARS using the exchange rate at receipt.nn### 4. Interest from Crypto LendingnEarnings from platforms like Binance Earn are taxable as income.nn## How to Calculate Crypto Taxes in Argentinan1. **Convert Transactions to ARS**: Use the exchange rate at the time of each transaction.n2. **Determine Gains/Losses**:n – **Capital Gains**: Selling price (ARS) – Purchase price (ARS).n – **Income**: Full value of mined/staked/received crypto.n3. **Apply Tax Rates**:n – Short-term gains (<12 months): 5%–35%.n – Income: Progressive rates up to 35%.nn## Reporting Crypto Taxes to AFIPn- **Form F.710**: Declare foreign-held crypto (e.g., in Binance or Coinbase) if holdings exceed ARS 6 million.n- **Income Tax Return (Declaración Jurada)**: Report all crypto income under "Rentas de Capital" or "Ganancias."n- **Deadlines**: Annual filings are due in April–June.nn## 5 Common Mistakes to Avoidn1. Not reporting small transactions.n2. Forgetting to convert crypto values to ARS.n3. Misclassifying income as capital gains.n4. Overlooking foreign exchange holdings.n5. Failing to keep transaction records.nn## FAQ: Paying Crypto Taxes in Argentinan### 1. Is cryptocurrency legal in Argentina?nYes, but it’s not considered legal tender. Transactions must still follow AFIP rules.nn### 2. Do I pay taxes if I hold crypto without selling?nNo—only when you sell, trade, or earn crypto.nn### 3. Can I deduct crypto losses?nYes, capital losses can offset gains.nn### 4. What if I use a foreign exchange?nYou must still report income and holdings to AFIP.nn### 5. What are penalties for not paying crypto taxes?nFines up to 200% of owed taxes and potential legal action.nn## Final Tipsn- Use crypto tax software like Koinly or CoinTracker.n- Consult a local tax advisor for complex cases.n- Keep detailed records of all transactions.