How to Report DeFi Yield in Argentina: Complete Tax Guide for 2024

Understanding DeFi Yield Reporting Requirements in Argentina

As decentralized finance (DeFi) gains popularity among Argentinian investors, understanding how to report yield from platforms like Aave, Compound, or Uniswap to AFIP (Federal Administration of Public Revenue) is crucial. In Argentina, all cryptocurrency earnings – including staking rewards, liquidity mining income, and lending interest – are considered taxable assets under Income Tax Law 20,628. Failure to properly declare these gains can result in penalties ranging from 50% to 100% of the owed tax plus interest. This guide explains Argentina’s specific compliance framework for DeFi yield reporting.

Argentinian Tax Treatment of DeFi Earnings

AFIP categorizes DeFi yield as “Rentas de Cuarta Categoría” (Fourth Category Income) for individuals and companies. Key principles include:

• Tax Trigger: Taxation occurs upon yield conversion to fiat (ARS) or when used for goods/services
• Tax Rate: Progressive scale from 5% to 35% based on total annual income
• Reporting Threshold: Must declare ALL yield regardless of amount (no minimum exclusion)
• Asset Valuation: Use ARS value at time of receipt using AFIP-approved exchange rates

Step-by-Step Guide to Reporting DeFi Yield

Step 1: Track All Transactions

• Use blockchain explorers like Etherscan to document wallet addresses
• Record dates, yield amounts (in original crypto), and ARS equivalent values
• Maintain screenshots of DeFi platform dashboards as supporting evidence

Step 2: Calculate Taxable Income

• Convert yield to ARS using AFIP’s average monthly exchange rate
• Apply deductible expenses (e.g., blockchain transaction fees)
• Calculate net gain: (Yield Value in ARS) – (Associated Costs)

Step 3: Complete Tax Forms

• Individuals: File Form F.572 Web under “Bienes Personales”
• Companies: Include in Income Tax Return (DDJJ) under “Otros Ingresos”
• Specify source as “Rendimientos Financieros Descentralizados”

Step 4: Submit Documentation

• Upload via AFIP’s “Monotributo” portal for individuals
• Corporate filings through “Sistema de Presentaciones Digitales”
• Deadline: Annually by June 30th for the previous tax year

Common Reporting Mistakes to Avoid

• Ignoring small yields: Even 0.001 ETH rewards must be declared
• Using unofficial exchange rates: Always reference AFIP’s published rates
• Mixing personal and DeFi wallets: Maintain separate wallets for clearer auditing
• Forgetting gas fees: Transaction costs are deductible expenses

Essential Tools for Argentinian DeFi Users

• Koinly: Auto-generates AFIP-compliant tax reports with ARS conversions
• AFIP Exchange Rate Portal: Official monthly reference rates
• DeBank: Track yield across multiple protocols in one dashboard
• Ledger Live: Hardware wallet integration with transaction exports

Frequently Asked Questions (FAQ)

Do I need to report yield if I reinvest it?

Yes. All accrued yield is taxable regardless of whether it’s withdrawn or reinvested. Taxation occurs at the moment of receipt.

How does AFIP know about my DeFi activities?

Through cryptocurrency exchange reporting agreements and blockchain analysis tools. Major Argentinian exchanges like Lemon Cash report user data to AFIP annually.

Can I deduct losses from impermanent loss?

No. Argentina currently doesn’t recognize impermanent loss as a deductible expense. Only direct transaction costs are deductible.

What if I used a VPN for DeFi access?

VPN usage doesn’t exempt you from tax obligations. All Argentinian tax residents must declare worldwide income, including offshore DeFi earnings.

Are stablecoin yields treated differently?

No. Yield from USDT, DAI, or other stablecoins follows the same reporting rules as volatile crypto assets.

Disclaimer: This guide provides general information only, not personalized tax advice. Cryptocurrency regulations evolve rapidly in Argentina. Consult a certified contador público (CPA) specializing in crypto taxation for your specific situation. AFIP’s official guidelines should always take precedence.